UK car production sees biggest rise since 1976

British car production rose 58.5 percent on the year in December, the biggest rise since May 1976, the Society of Motor Manufacturers and Traders said on Friday.

Commercial vehicle production, a smaller sector, rose in December for the first time in 17 months, the SMMT added.

Full year car production was significantly lower than 2008 however, falling 30.9 percent.

"The significant rise in December vehicle production is welcome news and signals some greater stability across global automotive markets," said SMMT chief executive Paul Everitt.

"We expect the year ahead to be extremely challenging, but the return of economic growth and a competitive exchange rate will help UK producers."

The British government's car scrappage scheme — which gives drivers 2,000 pounds ($3,265) to trade in cars more than 10 years old for a more fuel-efficient newer model — has helped boost car sales and production but is due to end next month.

Engine production data, published for the first time, showed more than twice as many engines were built in the UK than new cars in 2009. Nearly three-quarters of those engines were exported.

"This underlines the significant role the UK plays in global automotive manufacturing and demonstrates the sheer scale of the motor industry in the UK," said Everitt.