New provisional figures released by the Office for National Statistics show that in the three months to July 2004, total car production (not seasonally adjusted) increased by 1.3 per cent compared with the previous three months.

Export car production rose by 3.1 per cent over the same period while production allocated for the home market fell by 2.8 per cent.

While UK car output dipped in July it remains 1.1 per cent up compared to the same period a year ago.

Year end forecasts for production now stand at 1.7 million units with 1.2 million of these cars destined for export.

The chief executive of the Society of Motor Manufacturers and Traders, Christopher Macgowan, commented: "Two milestones have come to symbolise the resurgence of car production in the UK. Last month on Tyne and Wear, the most productive car plant in Europe, made its millionth Nissan for the UK market.

"Meanwhile at Plant Oxford, demand for the new MINI continues to drive output forward and tomorrow the 500,000th MINI will roll off the production line. This will be a full two years earlier than expected."

He continued: "These landmark achievements for key car plants remind us that 'Made in Britain' is a brand for which the industry can rightly be proud."

Increases in vehicle production levels may affect the volumes of platinum, palladium and rhodium bought by the auto industry for use in autocatalysts to control harmful emissions.