Motor trade insurance holders saw the biggest rise in vehicle output for over 30 years in December, new figures have revealed.

Data issued by the Society of Motor Manufacturers and Traders (SMMT) has shown that there were 85,316 new cars produced in the UK last month, a jump of 58.5 per cent on November and the biggest since 1976.

Paul Everitt, chief executive of the SMMT, said that commercial vehicle output also rose for the first time in 17 months, with a 15.6 per cent increase to 7,271.

"The significant rise in December vehicle production is welcome news and signals some greater stability across global automotive markets," he said.

Mr Everitt added that he expects the year ahead to be "extremely challenging", but said the return of economic growth and a competitive exchange rate will help UK producers and motor trade insurance holders.

Meanwhile, motor trade insurance holders in Scotland may be selling more Mazdas in the coming months, after the Japanese car manufacturer revealed it will ship vehicles directly into the country.

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