Newly released data from the Society of Motor Manufacturers and Traders shows that output in January was down 0.3% to 128,620 cars compared to the same month in 2013.

In response, Phil Harrold, automotive partner, PwC, said: ‘The figures show that UK production for export remains strong whilst production for the domestic market has slowed a little, possibly as PPI claims monies begin to tail off. With the European market showing some recovery (up 5% according to recent figures) and new model launches scheduled later in the year, the overall industry should continue to power ahead.’