The figures from the Society of Motor Manufacturers and Traders (SMMT) show that manufacturing for export grew for the sixth consecutive month with volumes up 9.7%. Meanwhile, production for UK customers grew 2.5% – an indication of the strong state of the domestic market.

The performance follows a record year for exports in 2015, with total car production reaching 1.6 million – the highest in a decade.

Mike Hawes, SMMT chief executive, said: “January’s figures mark an encouraging start to the year for the UK car industry, following an impressive 2015. We expect output to continue growing in the coming years as the industry benefits from continuing investment, but much will depend on global economic and political conditions and consumer confidence.”

Phil Harrold, automotive partner at PwC, added: “The market is now back in full swing following a rise in demand in 2013, ahead of the new emission rules coming in, and the subsequent sharp drop off in 2014.  

“We’re now seeing fleet operators returning to a normal cycle of replacement. And while there may be some pain in purchasing vehicles that meet the latest Euro 6 regulations, with the costs of these typically higher than previous models, many can also look forward to long terms gains as a result of advances in technology impacting fuel efficiency performance levels, for example.  

“At the moment, however, a key issue for the industry is capacity, with dealers struggling to get slots in build programmes for larger commercials and buses.

“For some manufacturers, the waiting list can be as much as nine to twelve months, depending on the type of truck and specification, and this is much longer than in previous years.”