CAR production in the UK is at its highest level in a decade as overseas demand drives a growth in manufacturing.

In the 10 months to the end of October, UK car manufacturers have produced more than 1.3 million units - up 2.8 per cent on the same period last year and the highest level since 2005.

More than one million of these vehicles were shipped abroad, although the overall figures for the year to date show a slight dip in overseas demand.

Exports drove volumes in October, with foreign demand up 1.5 per cent compared to October 2014.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: “Despite a small drop in overall output last month, the industry has delivered a robust performance so far this year, particularly in terms of exports. Given the slowdown we’ve seen in several key global markets in recent months, UK automotive manufacturing still remains in a strong position.”

Meanwhile, the number of British commercial vehicles made for export was up 32 per cent in October, from around 2,800 in October 2014 to almost 3,800 last month.

Overall comercial vehicle production was up by around 10 per cent.

Mr Hawes added: “It’s great to see UK commercial vehicle manufacturing continuing its resurgence in the third quarter of 2015, with year-to-date figures still demonstrating impressive double-digit growth. Particularly encouraging is the growing demand for exports, fuelled by the recovery of the sector’s largest market, Europe.”

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