April car production in the UK exceeded 2004 levels for the first time this year, official figures have shown.

The Society of Motor Manufacturers and Traders (SMMT) revealed that there was a 10.6 per cent rise in automotive production last month, despite concerns about an economic slowdown.

A series of interest rate rises and high oil prices have prompted concerns that the UK could be about to experience a significant economic slowdown.

There have also been repeated warnings about the state of the manufacturing sector and the high profile collapse of MG Rover.

"Despite problems at Longbridge, today's figures show that the UK still has a strong vehicle manufacturing base', said SMMT chief executive Christopher Macgowan.

"What we need to ensure is that government delivers on its promise to regulate with a lighter touch, to minimise the cost burden and maintain the competitiveness of UK manufacturing."

The figures follow an announcement from Shanghai Automotive Industry Corporation (SAIC), the Chinese carmaker that had looked set to buy MG Rover, that it planned to ramp up its production.

SAIC is hoping solid demand from the booming domestic market along with the company's partnerships with western firms will help establish it as a global brand.