The number of new car sales accelerated to its highest ever annual level last year, fuelled by ideal consumer conditions, it was announced today.

A total of 2,579,050 new cars were sold in the UK last year - a slightly higher number than the previous record of 2,563,631 set in 2002, the Society of Motor Manufacturers and Traders (SMMT) said. About 1.25 million cars were bought by private buyers last year, and diesel sales soared to record levels.

"2003 was the third successive record year and it reflected consumer confidence, excellent deals for new cars, the strong housing market, low interest rates and fierce competition in the market place," an SMMT spokesman commented.

"We expect 2004 sales to reach around 2.5 million without perhaps reaching last year's record figure. However, earlier last year we did not think 2003 sales would be as high as they turned out."

Further details of the record year of 2003 were due to be released later today by the SMMT. They were expected to show that the troubled MG Rover company saw sales slump by 27% in December 2003, following a 32% decline the previous month.

MG Rover's 2003 total sales were expected to be about 3% down on those for 2002. In contrast, Rover's former owner BMW is expected to post a 9.5% rise in sales last year.

Ford was once again expected to have been the number one car-selling company in 2003, followed by Vauxhall, Renault, Peugeot and Volkswagen.