Private buyers piled back into the new car market last month as manufacturers dramatically lowered prices, according to latest figures from the Society of Motor Manufacturers and Traders, writes David Duffy.

Private registrations soared 14.1 per cent as major companies such as Ford and Vauxhall brought in list-price reductions.

While a number of big companies including Peugeot, Renault and Volkswagen recorded big sales increases compared with October 1999, Rover had another bad month.

The West Midlands company sold 5,613 cars in October compared with 7,678 the previous year its market share dipping from 5.13 per cent to 3.66 per cent.

The Society of Motor Manufacturers and Traders said overall the number of new cars bought in October totalled 153,541, a 2.6 per cent rise on the October 1999 figure. The society's chiefs welcomed the figures and added that research carried out at last month's Birmingham Motor Show indicated that nearly half the show's visitors intended to buy a new car over the next 12 months.

SMMT chief executive Christopher Macgowan said: "As well as producing new, improved models, manufacturers are reducing list prices and providing longer warranties and better servicing packages."