U.K. car production has its biggest year-on-year monthly increase of 2013, jumping 17.4% in October to 160,854 units on the back of rising domestic demand and a recovery in deliveries to mainland Europe.

The Society of Motor Manufacturers and Traders says the improvement raised year-to-date production 5.4% to 1,286,287 units.

The build for the home market soared 52.4% for the month to 30,672 units, while exports grew 11.4% to 130,182.

SMMT CEO Mike Hawes says about 50% of U.K. car exports go to Europe and after months of decline, EU demand recorded its second consecutive month of growth.

“With European demand showing early signs of recovery, we expect production to continue positively in the coming months,” Hawes says in a statement.

The October output pushed year-to-date production for the U.K. market up 26.6% to 271,611 units and the export build back in positive territory, up 0.9% to 1,014,676 units.

The commercial-vehicle build skidded 33.8% to 7,875 units in October for a 10-month total down 19.9% to 75,484.

Hawes says the overall CV outlook remains gloomy for the rest of the year.

“The downward trend in CV production continued in October, given continually low levels of demand across the EU combined and structural and model changes in the U.K.,” he says. “Despite some areas of good news, with U.K. bus and truck manufacturing growing in the month, the domestic CV manufacturing outlook remains negative for the rest of the year.”

The region’s CV output fell 28.4% to 3,752 units in October for a 10-month total down 11.6% to 35,074. The export side plunged 38.1% for the month to 4,123 units, giving a year-to-date total down 25.9% to 40,410.

Car demand saw U.K. engine production surpass 2 million units for the year. The October output rose 6.5% to 254,480 units for a 10-month total up 2.4% to 2,172,775.

The month’s build for the U.K. market climbed 15.4% to 109,425 units, while exports showed a 0.6% uptick to 145,055.

Year-to-date, production for the home market grew 10.8% to 882,142 units, with the export side down 2.6% to 1,290,633.