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The Society of Motor Manufacturers (SMMT) has cancelled the 2010 British International Motor Show after thorough discussion with the UK automotive industry.
It says that it was a "difficult decision" and blames the "unprecedented challenges" facing the traders, both in the UK and around the world, as a result of the economic downturn.
"The global credit crunch has placed the automotive sector under unique pressure and has created a level of uncertainty that deters manufacturers from committing to large-scale, international events," says Paul Everitt, chief executive of the SMMT.
He adds that the organisation is committed to displaying the achievements of the automotive industry.
Rob Mackenzie, joint managing director of Motor Industry Events, the organisers of the British International Motor Show, says the group supports the decision to postpone the exhibition.
Meanwhile, the Cannizaro Park Festival in Wimbledon has also been forced to cancel after organisers were unable to raise funding due to the recession.