Record exports saw the number of cars built in the UK grow by nearly 6% last year, giving the sector a much-needed confidence boost.

Working hard and fast to meet export demand, car production increased by 5.8% to more than 1.3 million.

A total of 1,343,810 cars were built last year, with 1,124,676, or 83%, for export, and 219,134 for the home market. Exports were up by 17% over the year, while production for UK sales fell by 29%, the Society of Motor Manufacturers and Traders (SMMT) said.

The SMMT also found that despite a modest fall in December, engine production rose by 4.9% last year, to 2.5 million.

Business minister Mark Prisk praised UK car plants, lauding them “amongst the most productive in Europe”. He said: “The global vehicle market grew by around 4% in 2011. At the same time, UK vehicle production grew by nearly 6% demonstrating how the UK has out-performed the market this year.

“Exports of UK-made cars and commercial vehicles have also risen from 75% to over 80% of total production to meet this growing demand.”

He added: “Multibillion-pound investment and the creation of new jobs in the automotive sector demonstrates that the UK can successfully compete for business across the world.”