LONDON -- UK production fell 11 percent in July, hit by model changes, seasonal adjustments and preparations for tougher new emissions standards, the Society of Motor Manufacturers and Traders (SMMT) said in a statement.
Output stood at 121,051 units last month, the SMMT said, with demand at home slumping 35 percent compared with a drop in exports of 4.2 percent.
The SMMT also said July last year had been a particularly strong month due to the launch of several new models.
"The bigger picture is complex and month-by-month fluctuations are inevitable as manufacturers manage product cycles, operational changes and the delicate balance of supply and demand from market to market,” Mike Hawes, SMMT CEO, said.
The sector, which is heavily reliant on European and global supply chains, is concerned that any Brexit loss of free and unfettered trade with the European Union, its biggest export market, could raise costs and lead to delays at ports.
"To ensure future growth, we need political and economic clarity at home, and the continuation of beneficial trading arrangements with the EU and other key markets," said Hawes.
Jaguar Land Rover, Nissan, BMW, Toyota and Honda are among automakers who build cars in the UK.
In the first seven months, UK car manufacturing fell by 4.4 percent to 955,453.