Data shows 136,397 new units rolled off UK production lines, compared to 126,566 in the same month last year.
Production for the home market rose from 25,382 in July 2016 to 29,872, while production for the export market rose from 101,184 to 106,525 units.
The SMMT says that the increase comes as carmakers ramped up production for new and existing models ahead of summer factory shutdowns.
Year-to-date production also passed the one million mark. However, this is down -1.6% on 2016.
SMMT chief Mike Hawes says: “UK car production lines stepped up a gear in July, as usual bringing forward some production to help manage demand ahead of September and routine summer factory shutdowns.
“As the timing and length of these manufacturing pauses can shift each year, market performance comparisons for July and August should always be treated with caution, but as long as the economic conditions at home and abroad stay broadly stable we expect new car production to remain in line with expectations for the rest of 2017.”
UK car production ‘stepped up a gear’ in July
Car manufacturing in the UK rose 7.8% in July, according to the Society of Motor Manufacturers and Traders (SMMT).