Britain’s car industry reported record exports in the first 11 months of the year as a combination of the low pound and open access to Europe’s single market boosted sales.

UK car exports jumped to 1.25m, the highest ever, after factories put on more shifts and increased overtime to meet the demand for British-made vehicles.

The low pound has widely been cited by car makers as a reason for increased demand abroad while others have stressed the need for the UK to maintain zero tariffs and harmonised regulations to aid the steady flow of parts and finished vehicles across Europe.

Last week Nissan UK, which employs 7,000 workers at its plant in Sunderland and exports more than 80% of its vehicles, warned that it would be forced to reconsider expanding production in the UK should it face higher shipment costs or restrictions on the supply of vital parts.

Mike Hawes, chief executive of UK car industry trade body SMMT, said the car industry’s success could be jeopardised without the current arrangements staying in place.

“Made in Britain is a badge coveted by car buyers worldwide, and these latest figures highlight not just that international appeal but the fact that the UK is a globally competitive place to make cars,” he said.

“These latest results are the product of significant investments made over the past few years, but which will continue only if we can maintain the competitive trading conditions that have enabled the UK to become an automotive success story.”

The UK car industry’s total production was also strong, reaching a level not seen since 1999 after it climbed 9.6% in the first 11 months to more than 1.6m units. In November the total reached 170,000 vehicles, also a 17-year high.

The SMMT said production for the home market was “particularly strong in November” after rising 14.0% to 33,745 units, a situation that is expected to continue as the cost of imported cars begins to rise in the new year, giving UK-built cars a price advantage.

The automotive industry is increasingly seen as a vital part of the UK economy that accounts for more than £71.6bn turnover.

“With some 169,000 people employed directly in manufacturing and 814,000 across the wider automotive industry, it accounts for 12.0% of total UK export of goods and invests £2.5bn each year in automotive R&D,” the organisation said.