British car manufacturing increased 12 percent in March as home and export market improved, said the Society of Motor Manufacturers and Traders (SMMT) Thursday. SMMT said car production went up to 142,158 units, bringing 2014-to-date growth to 2.9 percent. Good news for British car manufacturers as European demand for cars strengthens. "After several years in the doldrums, European demand for new cars is now picking up with growth in the last seven months. This is a welcome boost for Britain's volume manufacturers for whom Europe is the key market," said Mike Hawes, SMMT Chief Executive. Yield slumped in January and February as some car manufactures adjusted production lines to produce new models. "As new models are launched and investments realised, the sector remains on course for all-time record levels of output by 2017,"said Hawes.