Commercial vehicle (CV) production fell for the 10th consecutive month, down by 68.6% following a plant restructuring, according to the Society of Motor Manufacturers and Traders (SMMT).
CV output for the UK also fell by 58.4%, whereas car production for the domestic market was broadly flat, down 0.6% to 13,880 units, with 84 fewer vehicles turned out.
UK vehicle production fell 13.6% in January, with factories producing 67,415 vehicles.
Production comprised 65,249 cars and 2,166 CV, the former declining by 8.2% compared with January last year.
The loss was driven by a decline in exports across both cars and CVs, with shipments down 10.1% and 75.0% respectively, amid weak demand in key global markets.
Production for overseas buyers still accounted for the 77.8% of vehicle output, with the EU remaining the largest global market for UK plants, taking 62.5% of car exports and 94.0% of CV shipments.
The US remained the second largest importer of UK-built cars with a 14.1% share, followed by Japan (2.7%), China (2.5%) and Turkey (2.4%).
While car exports to the EU rose 7.8%, reinforcing the need for free and fair trade and market access across the Channel, shipments to all other top five markets fell by double digits.
Production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars, meanwhile, fell 10.6% to 26,854 units, although they still accounted for 41.2% of car output.
Volumes look set to increase this year as next-generation EV production ramps up in Sunderland and with a further seven new EV models planned for rollout across the UK this year.
The latest independent outlook now expects overall car production to rise by more than 10% to some 790,000 units in 2026.
Combined car and light CV production is expected to reach 824,000 units, with the potential to reach one million by 2027, provided new model launches are on time, and the right economic conditions for investment exist.
Stability in global trading conditions, notably with the EU and US, and the delivery of measures set out in Government’s Industrial and Trade Strategies, remain critical to maintaining competitiveness and unlocking future growth.
Mike Hawes, chief executive of the SMMT, said: “Weak exports to markets beyond Europe amid soft demand delivered a disappointing start to the year for UK vehicle manufacturing.
“It reinforces the need for a forward-looking trade agenda that secures existing preferential access – notably with the biggest market on our doorstep, given protectionist ‘Made in Europe’ proposals – and builds new ones with markets worldwide.
“That must be combined with more competitive conditions for UK manufacturing – lower energy costs, a strong and sustainable domestic market, and specific support for our supply chain.”
