UK car output was up 26.4% to 150,802 vehicles in May according to data issued by the SMMT.

Production for domestic and export markets saw respective rises of 22.7% and 27.3%, as demand for UK-built cars around the world continues to grow.

So far this year, UK car production is up by 13.6% to 738,516 units.

May's increase was the biggest since August 2015, which saw a 40.6% increase in output.

Output was predicted to be high for 2016 due to record investment levels and the launch of several new models across the UK.

Mike Hawes, SMMT Chief Executive, stressed the need for economic stability and continued free access to the EU's single market to maintain the industry's competitive strength,

"May's performance is another strong month for UK car manufacturing, with demand for British-built vehicles up by over quarter. For this success to continue, we need government to maintain economic stability and help deliver the wider benefits – including free access to our biggest market – which have helped make the sector so globally competitive," he said.

John Leech, head of automotive for KPMG in the UK, said the recent fall in the value of the pound would further bolster output this year and next.

"UK car manufacturers will be cheered by these excellent figures that is the product of £10 billion investment over the past 5 years," he said. "The UK now produces many internationally acclaimed and successful vehicles such as the Nissan Qashqai, Range Rover and Vauxhall Astra to name but three and, the UK industry has never been in a better position than it is now.

"Sterling has depreciated by 15% since November 2015 and following the Leave vote, it is likely to remain at these levels and will further bolster UK car production in 2016 and 2017." 

However, he also said "the long-term future of our mass-market car manufacturers is dependent on securing free access to the single market and freedom of movement of people with the EU". 

"It will remain an uncertain time for UK car plants and their workers during the next two years, notwithstanding the positive car production news expected during this time."