The number of cars built in Britain rose by 15.6% last month compared to January 2011, the biggest increase for 16 months, figures showed.
The Society of Motor Manufacturers and Traders (SMMT) said the rise was a "tribute to the quality and competitiveness of UK production facilities, management and employees".
A total of 127,382 cars were made in the UK last month.
Business vehicle production fell slightly on last year, by 1.2% to 9,844. But engine production rose by 5% to 227,161.
SMMT CEO Paul Everitt said: "UK car production continues to drive manufacturing growth and a rebalancing of the economy.
"It is essential Government and industry continue the successful partnership that has helped deliver new investment and supply chain opportunities to secure long-term prosperity and jobs."
Copyright Press Association 2012