Car manufacturing in the UK rose again by 1.3% in July, with the industry now 3.7% ahead in the first seven months of 2011, compared to last year.

Commercial vehicle production declined 5.9% in July and is down 5.1% year-to-August, the Society of Motor Manufacturers and Traders data shows. 

Engine production remained stable, with a 0.4% July dip but keeping 4.% ahead year-to-August.

The SMMT said UK vehicle manufacturing is forecast to stay ahead, with focus on supplying markets overseas.

“Economic growth remains fragile but thanks to a strong export market, automotive manufacturing continues to outperform the broader economy,” said SMMT chief executive Paul Everitt.

“SMMT expects vehicle and engine production to continue to rise fuelled by demand in the fast growing BRIC economies, as well as mainland Europe and the US.

"The UK industry is globally recognised for its high quality, innovative design and exceptional reliability.”