FLEET sales will be central in boosting Britain's car parc by 10% over the next five years despite warnings of worsening congestion and air pollution. The latest Lex Report on Motoring predicts continuing strong growth in the car market despite an economic slowdown and increasing concern over the environmental impact of the car.

Entitled 'Driving for the Future', the 1998 Lex Report was prepared by MORI and Market Dynamics, who found that the car - and particularly the company - will be as popular as ever in the future. Market Dynamics predicts the economy will slow over the next two years, but then recover strongly at the end of the millennium, increasing the total car parc by some 10% by 2002, when new car sales are expected to hit 2.4 million.

The report forecasts a small decline in both fleet and retail markets, with the latter more profoundly affected, unless the Government introduces punitive tax changes in the March Budget. The report identified the typical company car driver as a middle-aged male of between 35 and 54 years of age - and the majority of the 310 company car drivers questioned said their vehicles were essential to their jobs, while a further 13% described it as helpful. Only 9% said the car was purely a perk - down from 15% in 1993.

The typical company car cost £15,800 last year - up £1,000 on 1996 and more than £5,000 more expensive than the average private car. Used car prices also continued to climb - from £4,200 to £4,300 last year - reflecting the long term buoyancy of the second-hand market which has helped fleets reap a residual value windfall in recent years.