British car manufacturing collapsed by 19.6 per cent in November with 129,030 vehicles rolling off production lines, the industry’s latest figures show.

Weaker demand in the UK and in key European and Asian export markets, exacerbated by “the ongoing impact of new regulation” were to blame for the sharp fall, the Society of Motor manufacturers and Traders said.

Exports suffered a particularly marked decline of 22.8 per cent while production for the home market was down 1.9 per cent.

Just over 105,000 cars were exported to global markets in November, still representing eight in every 10 cars leaving British factories.

The car industry accounts for 12.8 per cent of the UK’s total export of goods and would be hit hard by a no-deal Brexit. The sector is already feeling the impact as consumers put off big purchases because of political and economic uncertainty while stricter regulations on diesel cars have prompted sales to plummet.

In the year to date, more than 1.4 million cars have been built in the UK, an 8.2 per cent decline from a year ago, with export volumes down by 75,085 and output for the domestic market down 54,143.

Mike Hawes, SMMT chief executive, said, “It’s very concerning to see demand for UK built cars decline in November, with output seriously impacted by falling business and consumer confidence in the UK allied to weakening export markets.

“With fewer than 100 days until the UK leaves the European Union, the automotive industry needs certainty and a ‘no-deal’ Brexit must be ruled out.

“Thousands of jobs in British car factories and supply chains depend on free and frictionless trade with the EU – if the country falls off a cliff-edge next March the consequences would be devastating.”

The latest warning from the car industry comes after the UK’s five leading business groups said firms were “watching in horror” as bickering politicians bring the country ever closer to no-deal Brexit.

Companies are holding back investments intended to create jobs or raise pay and productivity in favour of contingency planning, according to The British Chambers of Commerce, EEF, CBI, Federation of Small Businesses and the Institute of Directors.