UK car production increased by 58.5% in December which was the biggest rise since May 1976.
Despite the rise in December, full year total production was down to 1,090,139 units a drop of 33.9%.
Paul Everitt, SMMT chief executive, said: “The significant rise in December vehicle production is welcome news and signals some greater stability across global automotive markets.
“We expect the year ahead to be extremely challenging, but the return of economic growth and a competitive exchange rate will help UK producers. Car and commercial vehicle production remain well below pre-recession levels and it is essential that there continues to be a focus on creating more and better priced finance for businesses and consumers.”