The European Union will remain the largest market for UK car manufacturers and continue to be a major market for the Cowley-built Mini.

A new report from finance giant KPMG and industry body the Society of Motor Manufacturers Traders claims the EU market is recovering, with vehicle registrations expected to increase from 10.7 million in 2013 to 13.5 million by 2018.

About 40 per cent of Mini parent firm BMW’s sales are within the EU.