UK car production rose 27.1% year-on-year to 1.27 million units in 2010, according to new figures released by the Society of Motor Manufacturers and Traders (SMMT).
A total of 123,019 commercial vehicles (CV) were produced last year, up 35.7% year-on-year.
UK engine output rose 16.2% year-on-year to 2.39 million units in 2010, despite seeing a fall in December.
The number of cars produced last month rose 10.6% compared with the same period in the previous year, while CV production was up 19.4% during the month.
Last year's figures were in stark contrast to those in 2009, when car production declined 30.9% year-on-year, while CV production was down 55.3%.
SMMT chief executive Paul Everitt said: "UK vehicle production is leading the manufacturing recovery.
"UK manufacturers exported more than a million vehicles last year, underlining the competitiveness and desirability of the current model line-up.
"We expect further growth across automotive manufacturing this year as industry continues to invest in new models and a variety of low-carbon technologies."
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