Car production increased 90% in March compared to the same month in 2009, according to data released by the Society of Motor Manufacturers (SMMT).

This is fifth consecutive monthly increase and the largest gain in the 40 years the SMMT has been compiling data,

A total of 117,622 cars were produced in the UK as well as 13,046 commercial vehicles, a 87% gain on the same month last year,

However, the car industry is likely to face a challenging few months following the end of the UK scrappage scheme on March 31.

The scheme - which gives consumers £2,000 off a new car if they trade in a car that is at least ten years old - has helped boost sales.

"Headline figures highlight the scale of challenges faced this time last year, but also demonstrate a steady improvement in demand in home and export markets," said Paul Everitt, chief executive of the SMMT.

"Industry will continue to face tough market conditions with the scrappage scheme closing and limited access to finance and credit for consumers and businesses."