Car sales for October dropped by 11 per cent on last year’s levels according to new figures from the Society of Motor Manufacturers and Makers (SMMT).

The SMMT's figures show that the rate of growth is markedly down on 2004, with the number of car registrations in the UK to date this year down by 5.6 per cent for the year as a whole.

The recent hike in fuel prices and increased interest rate is blamed for the dramatic downturn in this past month’s sales and the SMMT is expecting further losses in 2006.

Christopher Macgowan, chairman of the SMMT, said that the incentives on offer were indications of a struggling sector.

"A weak market means strong deals," he said. "Manufacturers and dealers will continue to fight hard for every sale."

The Ford Focus is this year’s best selling model, but the company is still down by six percent for the year.

Fiat has been affected most by the slump, only selling half of last year’s totals.


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