British car makers produced 170,691 vehicles in March – the most in any single month in 17 years, according to the SMMT.

This was also 7.3% more than was produced in March 2016.

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Exports continued to drive growth, with 118,332 of those built destined for export – an increase of 10.6% year-on-year.

Car built for domestic consumption fell 2.2% to 3,9,853, meaning less than one quarter of all cars built were for the UK.

Mike Hawes, SMMT chief executive, said, “UK car manufacturing is accelerating thanks to billions of pounds of investment committed over the past few years. A large proportion are the latest low emission diesels and it’s essential for future growth and employment that we encourage these newer, cleaner diesels onto UK roads and avoid penalising consumers who choose diesel for its fuel efficiency and lower CO2 emissions. Much of our output goes to Europe and it’s vital we maintain free trade between the UK and EU or we risk destroying this success story.”

Industry figures noted the figures highlighted the need for certainty around Brexit. For example, Chris Bosworth, director of strategy at Close Brothers Motor Finance “Car production hasn’t looked better this century, but with over three quarters of those cars bound for Europe it has never been more clear that the industry needs certainty, and soon, on Brexit.

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“Figures from our own Britain under the Bonnet report suggest that five million Brits have changed their car buying plans in the wake of the Brexit announcement. 17% of those are more likely to buy a used car, and this is a trend that could continue given the quality and value of cars available in this market. So for manufacturers, maintaining those trade links with Europe is essential for their future prosperity. And given industry employed 800,000 people and contributed £71bn to the economy in 2016, this should matter to us all.”

Simon Heath, automotive M&A specialist for KPMG added: “UK car manufacturers will be encouraged by these excellent figures that is the product of billions of pounds of investment over the last few years. The sector has enjoyed a boom of new models across brands, providing consumers with a wider choice of vehicles which encourages further demand. In addition, the depreciation of sterling has helped increase export volumes by 11.5% YTD.

“Whilst we expect 2017 to continue the strong car production volumes alongside the UK’s record new car registrations, potential uncertainty from the Brexit negotiations may provide additional challenges going forward.”