SMMT figures show car manufacturing rose by 10.7% in August and is up 4.4% during the first eight months of 2011.

Commercial vehicle output rose by 9.3% in August, but remains down 4.0% in the same period.

UK engine production increased 14.4% in August and is up 4.8% during the January-August period, while the SMMT says positive news on inward investment is helping automotive manufacturing to recover further.

"A manufacturing-led recovery is taking shape with August's automotive output up more than 10% and a recent wave of private investment securing long-term growth for the UK sector," said SMMT chief executive Paul Everitt.

"We are on target to exceed 2010 production volumes this year, with more growth to come in 2012. Government must continue to encourage and incentivise private sector investment in R&D, skills and capital equipment to maintain momentum and deliver lasting opportunities for the UK supply base."

The SMMT estimates the UK automotive industry accounts for GBP40bn in turnover and GBP8.5bn in valued added, while more than 700,000 jobs are dependent on the sector.