The latest rise brings 2014-to-date growth to 2.9%, with the Society of Motor Manufacturers and Traders (SMMT) saying that the industry is on track for record production levels over the next few years.

‘The 12% growth in UK car production in March is a significant step forward after a period of product changes at the start to the year,’ said Mike Hawes, SMMT Chief Executive. ‘After several years in the doldrums, European demand for new cars is now picking up with growth in the last seven months. This is a welcome boost for the UK's volume manufacturers for whom Europe is the key market. As new models are launched and investments realised, the sector remains on course for all-time record levels of output by 2017.’

Commenting on the news, Phil Harrold, automotive partner, PwC, said: ‘The SMMT manufacturing figures released today show a year on year increase of 12% to 142,000 vehicles, some 80% of which are exported. Increased output reflects the recovering confidence in Europe and the launch of new models, particularly from Mini and Nissan.

‘New model launches planned by other UK manufacturers for this year should result in continuing increases in manufacturing volumes.’