UK car production rose by 5.8% in 2011, according to figures released by the Society of Motor Manufacturers and Traders (SMMT), and ended the year with a 1.6% rise in December, to produce a total of 1,343,810 vehicles in the year.
Record exports have been the saviour of the UK automotive industry with more than 80% of vehicles exported, which more than made up for a 4.4% reduction in UK car sales.
Engine production also rose by 4.9% to just over 2.5 million, despite a small fall of 1.3% in December.
150,000 workers are employed directly in automotive manufacturing, and Nissan's Sunderland plant led the way, producing more than 480,000 cars, a 13.5% increase on 2010. Vauxhall's Ellesmere Port and Land Rover's Solihull and Halewood plants also saw big rises in production, but Honda's Swindon plant, Jaguar's Castle Bromwich site and Mini's Oxford site all saw drops in output.
Business Minister Mark Prisk said the UK had out-performed the global car market. "We have some of the best plants in the UK that are amongst the most productive in Europe," he said.
"Multi billion-pound investment and the creation of new jobs in the automotive sector demonstrates that the UK can successfully compete for business across the world."