The number of cars built in the UK last month topped 109,000 - the highest August total in 14 years.
The Society of Motor Manufacturers and Traders (SMMT) said production increased by 9.1% compared to the same month last year.
Output has risen by 12% so far this year to 1,132,727 units.
Consumer demand for new cars is up both at home and overseas, with a 10.2% increase in exports driving growth.
Production for the domestic market increased by 6.2% last month to 27,804, while export volumes increased to 81,200.
In the year-to-date, more than 877,523 cars have been built for international customers - 13.3% more than in the same period last year.
That, said the SMMT demonstrated the ongoing international appeal of British-built vehicles in the global market.
Mike Hawes, SMMT chief executive, said: “August’s strong performance is good news for car makers and welcome news for the UK economy, which depends on this thriving sector for an increasing share of UK exports.
“British car producers are exporting a diverse range of high quality, attractive new models that are in demand across the world thanks to multi billion pound investments made in UK plants over the past few years.
“Future success depends on continued investment in plant and products, and that in turn depends on the UK maintaining internationally competitive business and trading conditions.”