Car production in the UK rose 12% to 142,158 units in the month of March, showing a year-to-date increase of 2.9%, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).

Almost 80% of vehicles produced in the UK are destined for the global export market, and growing demand from the continent played a significant role in boosting British manufacturers’ sales, according to the trade body.

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Following a series of product changes at the beginning of 2014, Mike Hawes, chief executive of the SMMT, said March growth figures constituted a "significant step forward": "As new models are launched and investments realised, the sector remains on course for all-time record levels of output by 2017."

He added the overall European market continued to show definite signs of improvement: "After several years in the doldrums, European demand for new cars is now picking up with growth, in the last seven months.

"This is a welcome boost for the UK’s volume manufacturers for whom Europe is the key market," he said.