British car sales reached record levels during the first half of 2004, according to new figures.

The Society of Motor Manufacturers and Traders (SMMT) claims that car sales in the UK are now on track to record a new high over the full year, reaching an estimated 2.6 million, slightly higher than 2003's record 2.58 million sales.

Increased vehicle sales imply a rise in demand for platinum group metals to be used in autocatalysts.

Car sales dipped slightly last month, from 240,174 a year ago to 239,077, but rose overall by 2.2 per cent in the first six months of the year.

The booming British market, which continues to see sales rise, despite interest rate rises and efforts by car manufacturers to raise prices, is outpacing mainland Europe, where demand remains sluggish.

Diesel-powered cars have seen sales soar in recent months and now account for just under a third of all sales, while foreign imports make up almost 82 per cent of the market.

The SMMT data shows that Ford is now selling just under 15 per cent of all cars; Vauxhall 12.8 per cent; Renault 7.4 per cent; VW 6.9 per cent; Peugeot 6.6 per cent; and Toyota 4.7 per cent.

BMW has captured a 3.6 per cent share of the market this year, outselling its former British subsidiary, MG Rover, which has a 3.28 per cent share.