The crisis facing Britain's motor manufacturers was underlined today with figures showing that production slumped by a third last month.

Output from Britain's car makers fell to 97,604 cars, down 33% while commercial vehicle makers were even harder hit, seeing output down by more than 50% to less than 11,000 vehicles, according to the Society of Motor Manufacturers and Traders.

The pace of the decline has been dramatic. Even with November's sharp fall in car production output for the year is down less than 3%.

The figures are likely to get worse in coming months, with a number of car plants on extended Christmas breaks as the industry grapples with the collapse in demand in the wake of the credit crunch and the decline in consumer confidence.

"The UK motor industry is facing unprecedented challenges and urgent action is now required. The sector has seen falls in demand, extended plant closures and the first signs of redundancies in the supply chain," said Paul Everitt, SMMT chief executive.

"Without swift action and the ability to access credit and finance, significant damage will be done to the nation's industrial capability – leaving the UK poorly equipped to take advantage of any global growth when it returns."