There is good news for the British car production industry with a healthy return to growth recorded for the month of March.

Car production accounts for about 15 percent of Britain's overall manufacturing output and is an important barometer for the British economy.

More than 142,000 units were produced last month, an increase of 12 percent compared with March 2013, and overall by 3% this year so far according to figures from the Society of Motor Manufacturers and Traders (SMMT). European car sales are showing an increase of 10% for March an that is the seventh successive month of positive growth.

“With European demand for new cars is now picking up this is a welcome boost for the UK’s volume manufacturers for whom Europe is the key market,"  said Mike Hawes, SMMT Chief Executive.

Carmakers Jaguar Land Rover, Nissan and BMW are all showing growth as new models come on stream and British car manufacturers are set to record further growth for the rest of 2014 and for the coming years.The country's economy and recovering demand in Europe, which accounts for about half of the country's automobile exports.