Car production at UK assembly plants rose by 27.1% in 2010 to total 1,270,444 units, according to the Society of Motor Manufacturers and Traders.
Production of light commercial vehicles rose 35.7% year-on-year to 123,019 units.
Engine production increased by 16.2% to 2,386,717 units.
At least 70% of output from the three motor manufacturing sectors were produced for sale to overseas markets.
“UK vehicle production is leading the manufacturing recovery with output in 2010 up 27.8%,” said SMMT chief executive, Paul Everitt.
“UK manufacturers exported more than a million vehicles last year underlining the competitiveness and desirability of the current model line-up.
“Engine production in 2010 grew robustly with 2.39 million units manufactured and a strong export performance,” added Everitt.
“This performance continues to underline the significant role played by the UK in global production. We expect further growth across automotive manufacturing this year as industry continues to invest in new models and a variety of low carbon technologies.”