Car production figures rose 15.7% in November, the first rise since September 2008.
Year-to-date, output is down 34.4%.
Commercial vehicle production continues to fall, at -16.2% but the pace of decline has slowed.
SMMT chief executive Paul Everitt said: “November saw the first increase in UK car production since September 2008, reflecting the positive impact of scrappage schemes and economic stability in a number of major European markets.
“Total vehicle production is still well below previous levels and 2010 is set to be another tough year with considerable uncertainty at home and abroad. It is essential that governments continue to sustain and strengthen economic recovery, improving access to credit and encouraging investment in new technologies and products.”
Regarding commercial vehicle production, Everitt said weak demand in key sectors of the economy and fragile business confidence continues to stall recovery.
“Whilst the November figures represent the smallest recorded fall in the past 14 months, the sector is still down almost 60% on the year-to-date,” he added.