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The UK's car manufacturing sector experienced its best year since 2007 with 1,528,148 cars being produced in 2014, according to the Society of Motor Manufacturers and Traders.
The SMMT said this is a 1.2% increase on 2013's figures. In December 2014 alone, 108,721 cars were produced, up 27.1% on December 2013.
The SMMT said the growth comes despite challenges in some export markets. Overall, the output matched the growth in UK registrations, rising 8.0%.
China is now the UK's second-largest market outside of Europe, accounting for around 12% of exports compared to 1% in 2007, while in 2004 the wholesale value of UK car exports was around £12 billion.
This has doubled to more than £26 billion in 2014 despite a similar number of cars being made. The average car exported in 2004 cost £10,200 compared to £21,800 in 2014.
"Placed in context, a 1.2% growth in UK car manufacturing in 2014 represents a very successful year. The industry has overcome various challenges, including slower than expected EU recovery and weakness in some global markets," said Mike Hawes, SMMT chief executive.
"These production figures are testament to the strength of our automotive industry, and show that even in tough economic conditions it continues to be one of the driving forces behind our economic recovery. From Sunderland to Goodwood, Britain is turning out cars that are in demand all around the world," said Vince Cable, business secretary.
"The 2014 production figures show the continuing success of UK car production with annual volumes in excess of 1.5 million being maintained," said Phil Harold, automotive expert at PwC.
"Around 80% of UK car production is exported therefore the success of UK producers is heavily influenced by the economic fortunes of its export destinations. 2014 saw moderate growth in new vehicle registrations in the big three European car destinations: France achieved 1.1% growth, Germany, 2.6% and Italy, 4.3%. Spain showed significant growth of 18%, albeit from a low base," said Harold.
"The number of cars sold in the UK rose again in 2014 to its best year since 2007 but this was below expectations for a number of reasons. There were delays in new model launches, most notably at BMW Mini. There is no doubt that the economic woes of the Eurozone and Russia hurt exports," said John Leech, KPMG's UK head of automotive.
"We expect a number of manufacturers to post higher volumes in 2015, particularly Jaguar Land Rover, BMW and Vauxhall which all launched new models recently. Our forecast is that UK production will grow by 8% to exceed 1.6 million vehicles in 2015," said Leech.
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