British car manufacturing rose by 7.8% in July, with 136,397 new units rolling off UK production lines, according to figures released by SMMT (www.smmt.co.uk).

The increase in July’s production — in readiness for the important September (new registration plate) market — followed seven successive months of decline.

Exports grew by 5.3%, which means that cars made for overseas buyers represented nearly 80% of output in July with 106,525 units exported, compared with 29,872 that ‘stayed at home’.

Year-to-date new-car production remains solid and has now passed the one million mark, though showing a slight dip of 1.6% compared with 2016, which is in line with expectations.

Since January, overseas customers have taken delivery of 78.8% of the new cars made in Britain, with UK manufacturers now exporting cars to more than 160 different countries around the world.

SMMT chief executive Mike Hawes said: “UK car production lines stepped up a gear in July, bringing forward some production to help manage demand ahead of September and routine summer factory shutdowns.

“As the timing and length of these manufacturing pauses can shift each year, market performance comparisons for July and August should always be treated with caution, but as long as the economic conditions at home and abroad stay broadly stable, we expect new-car production to remain in line with expectations for the rest of 2017.”

Engine production also received a boost in July, with a 12% increase (equating to 20,000 units) countering the dip in June. Some 1.6 million engines were produced in the first seven months of the year — up 4.5% on 2016.

Mr Hawes added: “The UK’s engine-manufacturing sector has recently enjoyed billions of pounds of investment in plants and R&D, so it’s good to see returns continue in 2017.

“Given the direct link between this industry’s success and the demand for new cars — both in Britain and overseas — maintaining the free and frictionless trade we currently enjoy with the EU and other key international markets will be critical to on-going investment and growth.”