The pace of decline in car output is slowing, with June’s shortfall (-30.2%) the smallest of the year, according to the SMMT.

Meanwhile commercial vehicle output continues to decline sharply, recording a 60.4% fall in June.

“The UK motor industry is weathering the global recession and beginning the long road to recovery,” said Paul Everitt, SMMT chief executive.

“As production volumes and registrations begin to stabilise, Government must help to sustain consumer confidence and encourage banks to deliver the credit industry needs.”