UK car manufacturing was up 1.2% year-on-year in January to 129,049 units, continuing the upward trend of last year. 

The SMMT described the result as a 'steady start for car manufacturing as industry gears up for a strong year'.

January's rise was underpinned by strong domestic demand which saw output of cars built for the UK market rise 26.1%. 

The SMMT noted that analysts have suggested that UK car manufacturing could grow a third bigger by 2016 with output approaching two million vehicles a 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."

Car manufacturing

Jan-12

Jan-13

% Change

Total

127,550

129,049

1.2%

Export

106,190

102,111

-3.8%

Home

21,360

26,938

26.1%