Production fell across Britain's car making industry in the first quarter, according to industry figures, but output is expected to recover.
The Society of Motor Manufacturers and Traders (SMMT) said the number of vehicles made fell by 2% to just over 393,410 over the first three months of 2013.
In March, manufacturing slumped by 6.3%, with only around 126,900 cars produced.
The production of commercial vehicles was badly hit over the month - down by 18.7% in March - and engine production fell by 6%.
It comes as data from the Office for National Statistics showed that the UK economy avoided a triple dip recession, with growth of 0.3% in the first quarter of the year.
But the recovery was driven by a strong services sector, not production - which only rose by 0.2%.
The SMMT said an early Easter weekend and weak demand across Europe for new cars hit demand in recent months.
But the organisation's interim chief executive said that, looking ahead, things were likely to improve.
"Despite ongoing difficult market conditions, UK automotive manufacturing is expected to grow overall in 2013 and beyond, fuelled by significant investment from global automotive companies," he said.
Britain has so far managed to buck the trend of falling demand for new cars across Europe, with sales rising for the 13th successive month in March.
Over the month, car registrations in the UK increased by 5.9% when compared to the same month in 2012.
In contrast, they fell in Germany - Europe's biggest car market - by over 17% and were 16.2% lower in France.
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