Land Rover Evoque (miromiro/Bigstock.com)

The automotive industry has become a mainstay of the UK’s manufacturing output, but it faces uncertain times.

Reports that some mainland Europeans are shunning British built cars are anecdotal, but no doubt worrying for carmakers. The chief executive of Jaguar Land Rover, Dr Ralf Speth, has said that people are boycotting UK vehicles in the wake of the Brexit vote.

Speth made the comments at the Paris Motor Show recently. He said his sales teams across Europe are reporting that would-be buyers are turning their noses up at British autos.

However, the German said the risks associated with a so-called 'hard Brexit' would be worse, especially if tariffs are placed on goods traded with the EU.

Speth said: “If we face higher tariffs than anybody else, then it’s quite clear that it’s reducing the competitiveness of our products, especially in Europe."

If the UK reverts to World Trade Organisation rules – which would mean a 10% tariff on British goods – rough estimates suggest JLR could lose out on £100m profit each year.

JLR's spending plans have not changed, said Speth, although he hinted the firm may be forced to invest elsewhere.

“We have to realign all of our thinking and work on how to handle this Brexit best,” he said. And when asked if that might include investment, he said: “Everything.”

Nissan, the UK’s second biggest carmaker after JLR, is also concerned about any post-Brexit trade deals. The Japanese car giant's boss, Carlos Ghosn, warned that future investment at the company’s Sunderland plant was at risk if the government did not pledge compensation for any post-Brexit cost increases.

The boss of the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, also voiced concern about how the post-Brexit economic landscape might affect car makers: “The government must do all it can to maintain the competitiveness of the UK automotive sector, which has been hugely successful in boosting exports, creating jobs and generating economic growth in recent years.”