The SMMT has reported yet another monthly fall in new car production in the UK.

According to latest figures from the Society of Motor Manufacturers and Traders (SMMT), the number of new cars produced in June in the UK fell 30.2% compared to June 2008.

Despite the substantial drop, it appears as if the pace of decline in car output is slowing as June’s fall was the smallest of the year.

June 2009 saw 91,718 new cars produced in the UK.

Commercial vehicle production also fell in June by 60.4% to just 8,532 vehicles.

Paul Everitt, SMMT Chief Executive, said: “The UK motor industry is weathering the global recession and beginning the long road to recovery.

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

The demand for new cars has slowed substantially since the beginning of the economic downturn.

Earlier this year, the government introduced a car scrappage scheme to entice owners of cars older than ten years to trade it in for a new one with a £2,000 discount. It is still too early to analyse the success of the scheme.

The SMMT also reported that overall output has fallen but car manufacturing plants are expected to gradually restore volumes.