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UK car production fell in April after a rise in vehicle output for the domestic market failed to offset a drop in exports.

Production in April was 3.8% lower than last year, according to the Society of Motor Manufacturers and Traders (SMMT).

The number of cars produced for the domestic market increased by 11.1% to 29,930.

However, those intended for export, which represents a much larger portion of the market, fell 7.6% to 98,382.

Low demand in Europe may have hindered UK exports. "Europe as a whole is three million units off its peak," SMMT chief executive Mike Hawes told the BBC.

Economic confidence and interest in new models may be behind the UK's rising demand," said Mr Hawes.

"The UK buyer is more confident than the average buyer across the rest of Europe," he said.

The growing availability and popularity of car finance packages had also pushed up domestic sales, he added. About three-quarters of purchases are now made with a finance package.

"Brits have a greater predilection to buy on credit. These packages are attracting people into the showrooms," he said.