Car production accelerated ahead last month, the Society of Motor Manufacturers and Traders (SMMT) says.
A total of 86,250 cars were made in the UK in August - a 10.7 per cent rise on the August 2010 figure. Commercial vehicle (CV) production was also up, rising 9.3 per cent to 6,433.
Car production for the first eight months of this year was up 4.4 per cent compared with the January-August 2010 period, but CV production, despite last month's rise, was down 4.0 per cent. UK engine production rose 14.4 per cent last month and is up 4.8 per cent for the year so far.
The encouraging production figures follow news earlier this week that Jaguar Land Rover is to invest £355 million to build low-emission engines in Wolverhampton, potentially creating thousands of new jobs.
Also, UK automotive company CPP Global Holdings announced it would build a new version of iconic 1960s sports car the Jensen Interceptor at Jaguar's former Browns Lane site in Coventry.
SMMT chief executive Paul Everitt said: “A manufacturing-led recovery is taking shape with August’s automotive output up more than 10 per cent and a recent wave of private investment securing long-term growth for the UK sector.
“We are on target to exceed 2010 production volumes this year, with more growth to come in 2012. Government must continue to encourage and incentivise private sector investment in research and development, skills and capital equipment to maintain momentum and deliver lasting opportunities for the UK supply base.”