UK car production reaches highest level since 2007

The number of cars produced in the UK last year reached its highest level since 2007, as car plants produced 1.5m vehicles.

According to a report released on Friday by Society of Motor Manufacturers and Traders (SMMT), annual sales grew by an overall 1.2%, boosted by demand for premium brands.

However, despite the increase in sales, the number of cars exported declined for the second consecutive year.

"Placed in context, a 1.2% growth in UK car manufacturing in 2014 represents a very successful year,” said Mike Hawes the SMMT's chief executive.

"The industry has overcome various challenges, including slower than expected EU recovery and weakness in some global markets."

Hawes added that the popularity of luxury brands worldwide had seen the overall value of car exports double between 2005 and 2014, while over £7bn of investment into UK plants had been announced over the last two years.