Upper-medium cars could make a comeback in the UK as customers are driven away from SUVs by tax hikes and pressure from the environmental lobby.

Jason King, head of market intelligence at EurotaxGlass's, said: "There could be a return to more attractive D-sector cars. Big SUVs are not the thing to invest in for good RVs at the moment. "

King said the new Ford Mondeo and the recently launched Citroen C5 had raised the bar in the D-sector and were "coming to more people's attention".

He added that forthcoming products such as Vauxhall's replacement for the humdrum Vectra - the Insignia - would continue the trend.

He said the revitalised new market for large family cars would be replicated in the used market in 18 months time.

"There are more interesting cars now, they are not just functional - D is still a core sector.

King said the Citroen dealer network had successfully distanced itself from its "addiction" to discounting with the Grand Picasso and Picasso and that RV forecasts for the C5 were on a par with those for the Mondeo. But he warned "the whole thing could implode" if there was a return to heavy discounting.

King said one model that might miss out on the return to favour of upper medium cars was the new Renault Laguna. He said although the model is far better built than its predecessor the fact that it looks so similar means that dealers "can't justify a massive value difference on the forecourt".

King claimed the comprehensive restyling of the C5 meant "Citroen will reap the benefit but Renault will have to prop up the Laguna for some time".

King said Renault was wrong to adopt more conservative styling for the Laguna.

He said the car was not exciting enough to attract interest and was "outclassed" by competitors such as the Mondeo, Mazda6 and C5.