Ford has consciously capped less profitable short-cycle rental business during June, which reduced fleet sales for the month and placed Ford second in terms of overall car sales.

The announcement of a new pricing regime for Ford passenger cars on July 1, which makes the value of Ford cars much more obvious, has resonated well with private customers.

Ford is reducing the official recommended list prices on its medium and small cars from August 2. This follows similar action on Ford's large car range in April. Ahead of the August price changes, dealers will be offering special promotions which mirror the coming lower prices.

Nigel Sharp, managing director Ford of Britain, said: "In June we took an early decision to cap the volume of short-cycle rental business in order to protect the residual values of vehicles bought by fleet and retail customers. The appeal of our best ever vehicle range is reflected in rising retail sales, boosted by our new pricing strategy, which is leading the market in making the whole purchase process more transparent."