Black cab maker Manganese Bronze has said it made no profit in 2011 and could fall miss targets this year.
The group blamed the weak UK economy, uncertainty over the global economic outlook and a delay in fulfilling an order for 1,000 taxis from Azerbaijan.
The firm sold 1,502 taxis in the UK last year, compared with 1,653 in 2010 - a fall of 9.1 per cent.
However international sales are growing, the company said.
Manganese Bronze sold 705 vehicles compared with 226 in 2010.