Car manufacturing rose 10.7% in August compared with the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT) while year to date production is 4.4% higher than in 2010.
Engine production was the best-performing sector, up by 14.4% in August and 4.8% higher over the first eight months of the year.
The SMMT’s chief executive, Paul Everitt, said new investment was fuelling the rise: “A manufacturing-led recovery is taking shape, with August’s automotive output up more than 10% and a recent wave of private investment securing long-term growth for the UK sector.”
He said the industry was on target to beat 2010 production volumes, with more growth to come in 2012.
But the global picture remains bright.
“Optimism is not dead,” said KPMG’s Mr Leech.
“Large global manufacturers are setting their sights on top-line growth over the next two years, primarily focusing on new products, strategic acquisitions and alliances, innovation and increasing production capacity in high-growth markets.”