In September the number of cars built increased by almost 40% fuelled by a rise in exports, which was the best number for three years, said the Society of Motor Manufacturers and Traders (SMMT).
A total of 88,230 new cars rolled out of UK factories which was a rise of 25,105 compared to the same period last year and exports rose by a third with six in 10 cars heading to the EU.
The SMMT said that electric vehicles increased by 41.5%, but warned to ensure the UK and EU trade remains competitive urgent action is needed.
Mike Hawes, SMMT chief executive, said: “A particularly strong period of car making is good news for the UK, given the thousands of jobs and billions of pounds of investment that depend on the sector.
“With countries around the world shifting to zero-emission motoring, Britain is well placed to be a global EV manufacturing hub if the investment and trading conditions are right.
“Given the increasing importance of electrified car production, the first and urgent step is for the UK and EU to agree to delay the tougher rules of origin requirements that are due imminently.
“This would give the necessary breathing space for automotive sectors on both sides of the Channel to scale up gigafactories and green supply chains, both of which are essential for a stable, long-term transition.”
Edmund King, AA president, said: “Almost one third of drivers say they are put off electric cars due to the higher purchase price.
“It is essential that the rules of origin for batteries coming into force in January should be delayed to allow time for EU and UK gigafactories to come on stream.
“Without this consumers will be hit with an extra £3,600 cost on electric vehicles built in the UK which will be bad for the economy and the environment.”