Society of Motor Manufacturers and Traders (SMMT) figures show that car production in the UK has increased by 7.6% in July, to take the total since the start of 2016 past the 1 million mark.
This is the biggest number in more than a decade, with 126,566 cars being made in the last month alone, and so far in 2016 output is up by 12.3% despite the Brexit vote in June.
Almost 80% of the cars made this year so far have been destined for overseas markets, with the EU the biggest export market of UK made cars.
Mike Hawes, chief executive of the SMMT, said, UK car production in 2016 is booming, with new British-built models in demand across the world.
He added that manufacturers have invested billions to develop new models, and to produce them competitively in the UK. Future success will depend on continued new care demand, and attracting the next wave of investment, so Britain must demonstrate it remains competitive and open for business, Hawes said.
The EU referendum sparked a warning that car makers in the UK faced a skill shortage if freedom of movement for workers from the EU to come and work in the UK was restricted.
Toyota, who have a factory at Burnaston in Derbyshire, are on of the UKâs largest car producers. However, the chief executive of Toyota, Johan van Zyl, said that the scale of the manufacturerâs future presence in Britain would depend on the outcome of negotiations between the UK and Brussels.
Other major UK car plants include Nissan in Sunderland, Mini in Oxford, and Aston Martinâs new factory in south Wales.