The car manufacturing industry picked up in January as new car production rose by 4.3 per cent after a poor second half of 2006.
This represents the first increase since May last year and could be a sign of the big car companies finally seeing some reward for the major restructuring efforts of last year.
There was also a rise of 7.9 per cent in the total number of commercial vehicles, particularly vans, produced last month although the heavy trucks sector recorded disappointing results.
Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: "We are starting to see a degree of stability develop in production volumes, following major restructuring and new model introductions last year.
"Growth came from vehicles destined for export, reflecting the continued importance of the British car industry to the global market."
He added: "Vans continue to flex their muscles in the commercial vehicle arena, with a marked increase in units destined for the home market."
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