Latest figures show that car production rose 4.5% in first 11 months of year to 1,424,023 units. Although the data also shows a 3.6% dip in November output, as number of mass-market manufacturers prepared their production lines for new models, the SMMT added that the forthcoming new models will play an ‘integral part in what is predicted to be an even stronger 2014 for UK car manufacturing.’

Commetning on the figures, John Leech, KPMG’s UK head of automotive, said: ‘The industry is in confident mood as its key export market, the EU, continues to recover, posting its third straight monthly sales increase.  Most analysts are now forecasting EU car sales will grow in 2014, reversing six-straight years of falls.  The UK market is also expected to grow next year by approximately 5 percent but not as quickly as in 2013. This reflects the fact that the UK market is almost back to its long-run sales average.

‘As for the rest of the EU, in Northern EU countries car sales are approximately only three-quarters of their long-run sales average and half in Mediterranean countries. This means the medium-term prospects for UK automotive production remain bright and will principally be fuelled by exports to both the EU and emerging markets. 

‘Our forecast is that UK production will continue to rise in 2014, 2015 and 2016 before peaking in 2017 at 1.9 million vehicles.’