Jaguar XE (miromiro/Bigstock.com)

UK car production hit a 10-year high in 2015, according to the Society of Motor Manufacturers and Traders (SMMT). The body said that 1.59 million cars were built in Britain over the year, a rise of 3.9 per cent.

Demand from China and Russia fell by 37.5 and 70 per cent, respectively. However, these drops were offset by an 11.3 per cent rise in demand from the EU, the UK's largest car export market.

The 10-year high was helped by a 9 per cent increase in output from Jaguar Land Rover, which overtook Nissan as Britain’s biggest car maker.

2015 saw the first full year of production of the Discovery Sport model, while the firm's XE sports sedan began being built. JLR built nearly 490,000 vehicles, around a third of the country’s entire output.

BMW's Cowley plant in Oxford also saw output rise, as did Toyota's factory in Burnaston, Derbyshire.

EU membership 'vital' for 'growth and jobs'

More than three quarters of all UK-built vehicles are sold overseas, with the EU being the largest export market.

Despite the rise in output, it fell short of the industry estimate of 1.66 million cars. Concerns over whether the UK will remain in the EU has created some doubt in the industry.

SMMT Chief Executive Mike Hawes said, "Europe is our biggest trading partner and the UK's membership of the European Union is vital for the automotive sector in order to secure future growth and jobs."

Some forecasters estimated that UK car output in 2016 would match the all-time record of 1.92m set in 1972. The SMMT now hopes this will be achieved in 2017.