Car production rose 37% year-on-year in August bringing further positive news for the automotive and insurance sectors, figures from the Society of Motor Manufacturers and Traders show.
A total of 77,882 cars were manufactured in the country last month, 57,000 of which were exported, the SMMT said.
Overall, 812,687 cars were built in UK factories in the first eight months of 2010 - an increase of 41% from the same period last year.
Production of commercial vehicles was up 22% for the month and 41% for the January-August period, while engine output was 15% higher last month and 27% in the year-to-date.
"UK vehicle and engine production continues to lead a strong manufacturing recovery," said SMMT chief executive Paul Everitt.
"The UK is an important part of the global automotive industry, exporting cars, commercial vehicles and engines to markets around the world.
"There are still significant challenges ahead and Government must do all it can to encourage continued international investment in UK-based research and development, skills, plant and machinery."
© Press Association 2010