The UK automotive manufacturing sector generated its highest ever turnover at £60 billion in 2012.

According to the Automotive Sustainability Report report from the Society of Motor Manufacturers and Traders (SMMT), the UK automotive industry’s success is supporting the country’s economic recovery.

The growth was mirrored in the automotive retail sector in the UK, with figures from the AM100 showing the top dealers pushing total turnover to £40.6bn with a 7% increase over the previous year.

Total vehicle output increased by 8% in 2012, automotive research and development increased by 9% to £1.7bn.

Industry performance improved across almost all environmental indicators. Manufacturing CO2 emissions (-3%), energy use (-5%) and waste to landfill (-8%) per vehicle produced all declined. Employment in automotive manufacturing rose 2% to 146,000 in 2012.

Mike Baunton, SMMT's interim chief executive, said: “UK automotive continues to support the country's economic recovery, with rising turnover, increased manufacturing output and record export volumes providing further proof of industry's ability to compete on a global scale.

"It is clear that our future is bright and that the environmentally-focussed approach that vehicle manufacturers have taken to improve manufacturing processes and products will support our continued economic success.”