The number of cars produced in the UK has fallen to the lowest level since 1956.

Output in October, according to data from the Society of Motor Manufacturers (SMM), was down 41.4 per cent with just 64,726 vehicles produced.

It was the fourth straight month of decline and the weakest October for 65 years, as firms grapple with the global shortage of semiconductors which has led to production stoppages.

SMM chief executive Mike Hawes said the challenges in keeping the industry operational were 'immense'.

He said: "These figures are extremely worrying and show how badly the global semiconductor shortage is hitting UK car manufacturers and their suppliers."

As well as microchip shortages, there has also been a fall in production capacity with the Honda plant in Swindon closing in July.

Instead of another car manufacturer, the site was sold to US-based logistics firm Panattoni.

According to SMM, car output for the domestic market was down and by 37.9 per cent, with vehicles for the overseas market down 42.1 per cent.

In a changing trend, battery electric, plug-in or hybrid electric models now account for 30.9 per cent of all cars produced.

Battery electric vehicle manufacturing rose by 17.5% to 8,454 units, meaning that, so far this year, UK car makers have produced more than 50,000 zero emission vehicles, exceeding the total built in the whole of 2019, before Covid.

Mike Hawes said: "Britain's automotive sector is resilient but with Covid resurgent across some of our largest markets and global supply chains stretched and even breaking, the immediate challenges in keeping the industry operational are immense."

New car sales plunged by 34.4 per cent in the traditionally busy month of September, as chip shortages hit production.

Semiconductors are considered to be at the heart of the so-called Fourth Industrial Revolution - with surging demand not just from car manufacturers but for mobile phones, medical and other emerging artificial intelligence devices.

It's estimated that semiconductor sales could reach close to £375 billion this year.