UK car production increased by 62.7% in February and commercial vehicle also recovered sharply up 74.2%.
Paul Everitt, Society of Motor Manufacturers and Traders chief executive, said the growth was encouraging news for the industry.
He said: “Manufacturers and the Government need to work together to ensure there is continued investment in new products and technology to sustain future growth.
“Sterling movement has made UK-built products more competitive, enabling the UK to work through challenging economic conditions.
“UK-built engines and vehicles are exported to over 100 markets worldwide, offering some resilience to local market conditions. Industry looks to next week’s Budget to maintain stability in demand through continued investment in new products.”