CAR sales in the UK fell by five per cent last year to fewer than 2.5 million, industry figures showed.

The figures, compiled by the Society of Motor Manufacturers and Traders (SMMT), suggest the total number of cars sold last year was the lowest since 2000.

The fall was largely due to a ten per cent drop in the consumer market, as individuals and families stayed away from the showrooms.

SMMT chief executive Christopher Macgowan blamed consumers' reluctance to spend money on increased interest rates and economic uncertainty.

He said the figures for last year were worrying, and predicted a further fall this year.

Mr Macgowan told BBC Radio 4's Today programme: ''If we were looking at the high street retailers, even if they were reporting a 0.5 per cent or one per cent drop, we would all be very worried.

"We have had some good years, so some might say this is merely an adjustment, but it is down and it is serious."

The details behind the headline figure are particularly worrying, said Mr Macgowan.

"We sell about one million cars a year to private consumers and the rest goes to the business world," he explained.

"It's the consumers that have stayed away from the showrooms in 2005 - about ten per cent down, a really serious drop.

"I think the main reason is that all of us get affected by uncertainty. I guess those interest rate rises last year did throw us off track.

"We are like any retail sector. The interest rates have gone up, consumers are nervous and they have been staying away from the showrooms.

"I think it could well continue during this year. Sales have fallen below the 2.5 million mark in 2005 and our prediction for 2006 is a further small reduction, so I think we have got some difficult days ahead."