Asia's biggest vehicle manufacturer, Toyota Motor, has said it will increase production by 11 per cent this year in what is being seen as a positive announcement for platinum producers.

Increases in car production imply an increase in demand for platinum and palladium from the automotive sector, which uses the metals in autocatalysts to lower harmful emissions.

Japan-based Toyota expects to increase production to 6.74 million units over the course of the year, which is 230,000 more than its last forecast issued in December 2003.

Toyota President Fujio Cho stated: "In the first half, Toyota sold more vehicles in all regions and we hope to expand our record sales this year.

"We have so much growth potential because there are factories that haven't even started operating."

Toyota is eyeing Ford Motor's position as the world's second-largest automotive producer.

The company aims to increase its share of the total worldwide automotive market from 12 per cent to 15 per cent within a decade.