Car manufacturing rose 1.3% in July and is up 3.7% over the first seven months of 2011. Commercial vehicle output however declined 5.9% in July and was down 5.1% over the January-July period.

UK engine production remained stable, dipping just 0.4% in July and up 4.0% for the year-to-date.

Vehicle manufacturing is forecast to grow steadily, with a continued focus on export markets.

“Economic growth remains fragile but thanks to a strong export market, automotive manufacturing continues to outperform the broader economy,” said SMMT chief executive Paul Everitt. “SMMT expects vehicle and engine production to continue to rise fuelled by demand in the fast growing BRIC economies, as well as mainland Europe and the US. The UK industry is globally recognised for its high quality, innovative design and exceptional reliability.”