Production is now up 15% from the start of the year, the SMMT said.
This was spurred by growth in the small car and private sector markets, the SMMT reported.
But, by the SMMT's own admission, it is 131, 000 fewer than in 2005.
The SMMT said that the recovery was expected to continue into next year.
Despite the rise in overall car sales in August, the SMMT said the outlook for car sales "remains challenging".
"New car registrations in August rose for the first time since June 2010, " said Paul Everitt, chief executive of the SMMT.
Car manufacturing rose 10.7% in August compared with the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).
Rover's sales during the last month of 2000 were the best experienced, with a 27.5% rise over the previous December, according to the SMMT survey.
"The outlook for 2013 remains positive, with demand in many faster-growing global markets offsetting the continued weakness in European economies, " said SMMT head Paul Everitt.
BBC: UK car exports hit record despite European market slump
"Future environmental and economic success will be determined by sustained investment in new technology, research and development, infrastructure and consumer incentives, " said SMMT's chief executive, Paul Everitt.
New car sales in the UK rose for the first time in more than a year in August, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT said consumers remained nervous about the economic outlook.
"We are pleased to see a rise in European new car registrations in April after such a long period of depressed demand, " said Mike Baunton, SMMT Interim Chief Executive.
There were 59, 346 new cars registered during the month, a rise of 7.3% on a year earlier, while sales of smaller cars rose by a third, the SMMT said.
Total new car registrations in the UK rose 5.3% in 2012, according to separate data from the SMMT, helping to drive up domestic demand for UK-manufactured cars by 15%.
BBC: UK car exports hit record despite European market slump
"The industry needed a boost and strong competition in the last quarter helped registrations top the previous year, making 2000 the third highest on record, " said SMMT's chief executive Christopher Macgowan.
The SMMT estimates there were 737, 000 jobs, across the economy, that were dependent in one way or another on the automotive sector in 2010 (the most recent year we have detailed figures for).
"Eleven of the global volume manufacturers have bases here, backed by 19 of the world's top 20 suppliers, " Business Secretary Vince Cable said last year during a dinner arranged by industry body SMMT.
The SMMT expects 2013 to be better yet.
BBC: UK car exports hit record despite European market slump
But to achieve further improvements, the SMMT has long been lobbying for the government to adjust taxes to encourage investment in new technologies and to offer consumers incentives to encourage them to buy more fuel efficient, less polluting cars.
Of the UK's car exports in 2012, 50% went to other parts of the EU, with another 15% going to the rest of Europe, 16% went to Asia (of which 8% to China) and 13% to the US, the SMMT said.
BBC: UK car exports hit record despite European market slump
At an event on 22nd March 2011, one of the Intelligent Energy powered taxis travelled from Forbes House, headquarters of the Society of Motor Manufacturers and Traders (SMMT) and the taxi's base for the day, to some of London's most iconic landmarks.
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