Car production in August was 37% higher than the same month last year, according to data released by the Society of Motor Manufacturers and Traders (SMMT).

Year-to-date output is up by 41% and car manufacturers turned out 77,000 vehicles in August of which 57,000 are destined for export, a rise of 51% on the year.

"UK vehicle and engine production continues to lead a strong recovery. However, there are still significant challenges ahead and government must do all it can to encourage continued international investment in UK based R&D, skills, plant and machinery," said SMMT chief executive Paul Everitt.