Data shows 271,359 units were produced in March compared to 227,134 in March 2016 – a rise of 19.5%.
Home market delivers increased by 21.4% from 97,326 units in March 2016 to 118,153 units in March this year.
Meanwhile, export demand grew by 18% from 129,808 units in March 2016 to 153,206 units in March 2017.
Overall, Q1 of 2017 finished stronger than Q1 of the previous year, with 744,338 engine units produced by UK manufacturers compared to 667,888 – an increase of 11.4%.
Mike Hawes, SMMT chief executive, said: “While Easter’s late arrival was a contributing factor, resulting in more productive hours in the month, it is encouraging to see growth in the domestic market bounce back to deliver a strong year-to-date performance at home and away.
“The results of recent significant investment in engine production capacity are clear to see – and yet more evidence of the sector’s ongoing resurgence.”
UK engine manufacturing grows
UK engine manufacturing output rose by a fifth in March, according to the Society of Motor Manufacturers and Traders (SMMT).