Renault's new family hatchback Megane has this week been named European car of the year 2003 by a panel of 58 journalists, narrowly beating the Mazda 6 into second place. Citroen's C3 was third, with the Honda Jazz fourth.

Philippe Talou-Derible, Renault UK managing director, meanwhile has taken a swipe at the UK Government for its constant interference in the motor industry.

He claims the issue over new car transaction prices has been mis-understood by people who have not grasped simple economics over the cost of living.

“As a percentage of average salary, prices in the UK are very competitive compared to mainland Europe,” says Talou-Derible. “It is already hard for large dealers in London to operate at a profit, which means it is left for the manufacturer to own stores in this territory.

“The Government is responsible for perpetuating the problem – if they could stay away it would help.”