The number of cars produced in Britain last month was 131,956 - a 7.8% dip on the May 2004 total, the National Statistics Office said.

A total of 32,808 cars were made for the home market - 19.7% fewer than in May 2004. Export production last month fell 3.1% to 99,148.

Despite the dip - following the Rover closure - the total for January to May was 704,539, only 1.9% down on the same period last year.

The Department of Trade and Industry and the Society of Motor Manufacturers and Traders published a joint study that showed there had been a 29% growth in automotive engine production since 1999.

Trade and Industry minister Alun Michael said: "The automotive engine sector is an undoubted success story of UK manufacturing."