UK car production rose last month at its fastest rate so far this year, with most of the growth destined for domestic consumption rather than export, the industry’s trade body said today.

UK-based automakers built 160,854 cars last month, 17 percent more than in October 2012, the biggest year-on-year increase so far this year, according to the Society of Motor Manufacturers and Traders (SMMT).

Car production so far this year stands at 1.28 million, 5 percent more than at the same point in 2012.

Car manufacturers are also increasing investment in production in the UK. Earlier this week BMW Group unveiled a new Mini to be built at its Oxford factory in England.

More than 80 percent of the cars built in Britain are destined for export, but the vast bulk of the rise in production this year has been driven by domestic demand aided by cheap finance deals and rising consumer confidence.

SMMT figures earlier this month showed that car sales in Britain so far this year are 10 percent higher than at the same point in 2012, making the country a bright spot in an otherwise gloomy European landscape for auto sales.