Strong domestic demand saw the output of cars built for the UK market rise 26.1%. Meanwhile of all the cars produced in January, a total of 79.1% were exported and independent analysts suggest that UK car manufacturing could grow a third bigger by 2016 with output approaching two million vehicles each year.

‘UK car manufacturing grew modestly in January, up just 1.2% on the same period in 2012. Output is typically subdued in January as manufacturers extend holiday periods to upgrade plants and re-tool for new models,’ said Mike Baunton, SMMT interim chief executive.

‘Despite ongoing economic challenges, growing demand for UK-built products in emerging global markets coupled with major new investment is paving the way for a positive year for automotive manufacturing.’