The number of cars produced for export reached record levels last year, official figures out yesterday showed.

But with the number of vehicles made for the home market dipping more than 9%, total UK car production in 2004 fell a fraction short of the 2003 total.

Cars made for export totalled 1,179,753 last year - 3.1% up on the 2003 figure, the Office for National Statistics said. Production for the home market reached 467,020, taking the overall production figure to 1,646,773 - 0.7% down on 2003.

The chief executive of the Society of Motor Manufacturers and Traders, Christopher Macgowan, said: "Stability has returned to car production in the last few years. Total volumes have remained steady at about 1.65m units, although output for export has been rising and is now running at record levels.

"However, while the picture is generally positive we need to guard against complacency. The UK hosts some of the most productive car plants in Europe, but rising raw material and fuel costs, as well as unfavourable exchange rates, play their part in threatening future prosperity, particularly for companies in the supply chain."

Although production of commercial vehicles fell 12.7% in December 2004 against the same month in 2003, the 2004 total of 209,293 was 10.8% up on the previous year. Commercial vehicles for export leapt 24.5% in 2004 to 128,107, while home production dipped 5.5% to 81,186.