Vehicle manufacturers in the UK reported an 8.4 per cent downturn in production activity in May 2013.

Some 129,355 new models were made during the month, which was down from 141,146 in May 2012, the Society of Motor Manufacturers and Traders (SMMT) confirmed.

However, production was still above 2007 levels, which suggests the industry has recovered well since the recession.

Mike Baunton, SMMT interim chief executive, said demand for British-made vehicles has held firm so far in 2013, although the financial problems in Europe have had an impact on the industry.

"[This is] testament to the appeal of UK-built products around the world and significant growth in volumes built for the home market," he remarked.

A recent study by Motoring.co.uk showed that 40 per cent Britons are looking to upgrade their car in the coming 12 months, although many are planning to purchase a German model made by BMW, Audi or Mercedes-Benz.

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