The Society of Motor Manufacturers and Traders (SMMT) figures shows that for the first time since 2019 more than one million vehicles was built for the first time last year.
The SMMT said that a total of 1,025,474 cars and commercial vehicles were built, this is an increase of 17% compared to the previous year.
Battery electric and plug in hybrid along with hybrid vehicles climbed to 346,451 up by 48% on the year before.
SMMT chief executive Mike Hawes said: “Receding supply chain challenges, new model introductions and a massive £23.7 billion of investment put UK vehicle production firmly back on track in 2023.
“Industry will now focus on the delivery of these commitments, transitioning the sector at pace to electric and scaling up the supply chain.
“With global competition as fierce as it has ever been and amid escalating geopolitical tensions, both government and industry must remain singularly focused on competitiveness, with all the jobs and growth this will bring.
“We are in a much better position than a year ago, but the challenges are unrelenting.”