Polish output of passenger and goods vehicles was up 11% year on year in August to 34,987 units, showing the first rise in four months and suggesting a recovery in demand, industry monitor SAMAR said.

Production rose although some plants were shut for holidays, Reuters noted.

Nearly all cars made in Poland are sold abroad and the auto industry has been hit hard by the recession in the euro zone, its major market. The biggest gainer in August was Volkswagen which produces models such as the Caddy and Transporter vans.

The number of passenger cars and vans rolling off Polish production lines in the first eight months of the year fell 12% year on year, SAMAR said.

July production fell 6%.

Fiat, General Motors and Volkswagen produce cars in Poland accounting for about 7% of the country's industrial output.