Drivers bought a record 2.5 million cars in the UK last year, making the country the second biggest new car market in Europe after Germany.

Sales grew for the third year in a row, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

TOP CARS

Ford Focus Vauxhall Corsa Vauxhall Astra Peugeot 206 Ford Fiesta Renault Clio VW Golf Ford Mondeo Renault Megane Ford Ka Source: SMMT

It said that in 2002 almost a million more new cars were registered than 10 years ago.

And last year's figure was 4.3% higher than 2001's total.

The increase was partly attributed to fierce competition among manufacturers and "a wealth of attractive new models".

The competition proved tough for UK-built cars - their share of registrations fell by 1.9% over the year, while cars built outside the UK gained 6.2%.

The top selling UK car was the Ford Focus, with Vauxhall's Corsa and Astra in second and third place.

Gloomy view from the top

But the SMMT said it expected sales to drop back in 2003.

That view was reinforced by a survey of 100 car industry executives.

Executives no longer see profitability rebounding any time soon Mike Bacon KPMG

The professional services firm KPMG found that car company bosses were less confident about the overall industry's return to profitability than they were a year ago.

When asked to comment on which of the next three years was likely to generate the highest profits, only 8% chose 2003. The majority, 57%, opted for 2005.

The figures are very different from a year ago when more than half thought 2003 would be the best year.

More new models

"It's pretty clear from the survey findings that executives no longer see profitability rebounding any time soon," said Mike Bacon, senior partner in KPMG's automotive practice.

He said car sales were being hit by the economic downturn as well as by customers expecting rebates, special pricing and other financial arrangements.

"Right now, vehicle manufacturers are facing challenges ranging from regulatory issues to the need to move from a mass-production mentality to one where new models... are rolled out much more frequently."