Car production in the UK rose sharply in January, jumping by 64.8% from the same period in 2009.
The increase in production is the largest year-on-year increase in monthly car production since May 1976, according to the Society of Motor Manufacturers and Traders (SMMT).
SMMT figures reveal that a total of 101,190 cars were built in January.
Paul Everitt, SMMT chief executive, said: 'Vehicle and engine production rose for a third successive month in January, demonstrating the continued success of global scrappage incentive schemes.'
Scrappage the end is nigh
However, there are worries that car production in the UK could decline over the coming months, because the Government's scrappage incentive will come to a close by the end of next month.
Calculations from the SMMT indicate that the UK scrappage scheme has been responsible for around 20% of all new car sales since it was introduced.
However, Everitt is optimistic that the recovery in sales and manufacturing will continue beyond the scrappage scheme. 'The SMMT expects a modest recovery in 2010 output as economic growth, a competitive exchange rate and the introduction of innovative new models to UK factories help to lift manufacturing levels above those seen in 2009.'