British car companies have called on the government to help boost the market and agree a free-trade deal with Europe as their struggles continue.

Output fell by 2.1 percent in January, with the Society of Motor Manufacturers and Traders (SMMT) putting it down to an increase in exports not being able to outweigh the 23.9 percent fall in domestic demand.

SMMT Chief Executive, Mike Hawes said: "The upcoming Budget is an opportunity for the government to provide supportive measures to stimulate the market, but the biggest boost would be the agreement of an ambitious free-trade deal with Europe"

This would end the ongoing uncertainty and help the UK to recover its hard-won reputation as a great place for automotive investment." Mr Hawes added. 

This comes as British luxury carmaker, Aston Martin announced chief finance officer, Andy Palmer will step down from his post at the end of March after it posted a $136 million pre-tax loss.

China sales rose by 28 percent last year but the company, like many others in the car industry, have seen demand drop since the start of coronavirus outbreak. 

Many companies have also seen their supply chains interrupted, with a number of plants manufacturing parts for UK car businesses located in the Hubei province. 

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The SSMT have asked for the financial boost from the government to be included in the budget on March 11.

After the post-brexit transition period, agreed between the EU and UK, has ended at the end of 2020 , fresh trade agreements will have to be agreed and implemented. 

Car manufacturers will be hoping a close agreement is met so they can continue their production lines without too many drastic changes.