Car manufacturers in the UK reported an 8.4 per cent downturn in production in May when compared with the corresponding month in 2012.

The Society of Motor Manufacturers and Traders (SMMT) confirmed demand for new models remained largely flat in the first five months of the year - falling by a modest 0.6 per cent.

Despite the recent downturn, car makers are still busier than they were in the years leading up to the recession, which shows the industry is in rude health.

Although economic problems in the eurozone have affected growth, domestic demand for new cars has gone from strength to strength in the past year or so.

Mike Baunton, SMMT interim chief executive, remarked: "Production levels are holding firm for the year so far, testament to the appeal of UK-built products around the world and significant growth in volumes built for the home market."

The Department for Transport recently confirmed that vehicle registrations increased by 6.5 per cent in the first quarter of 2013 when compared with the same period in 2012.