UK car production increased by 17.4% in October to 160,854 units, the largest monthly increase so far this year according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Manufacturing for the UK market was up significantly at 52.4% in October, while export growth also increased by 11.4%.

Around 50% of UK car exports go to Europe and after months of decline, EU demand shows signs of improving; now recording two consecutive months of growth.

Mike Hawes, SMMT chief executive, said: “UK car manufacturing for the home market increased strongly in October raising the year's performance 26.6% ahead of 2012.

“More than 15 brands build 50-plus models of car across the UK with volume and niche offerings providing a wealth of choice for our home and export markets. With European demand showing early signs of recovery, we expect production to continue positively in the coming months.”

Year-to-date car manufacturing has increased by 5.4% to 1.3 million units.

Commercial vehicles

Commercial vehicle production saw a decline of 33.8% in October to 7,825 units.

Output for the year-to-date is also down by 19.9% to 75,484 units.

Hawes said: “The downward trend in CV production continued in October, given continually low levels of demand across the EU combined and structural and model changes in the UK.

“Despite some areas of good news, with UK bus and truck manufacturing growing in the month, the domestic CV manufacturing outlook remains negative for the rest of the year.”