Tax and red tape mean "doing business in the UK is getting dreadful", one of the country's leading automotive executives claimed.
Jim O'Donnell, managing director of BMW GB, said the motor trade was particularly hard hit by regulation, environmental concerns and the complexity of the tax system.
He also urged the Government to not to "rush to legislation at the expense of industry" in its attempt to tackle global warning.
His comments came as new figures showed that BMW, the world's largest luxury carmaker, looked set to hit new sales records both in the UK and globally in 2006.
Speaking at BMW's annual press dinner in London, Mr O'Donnell said carmakers and road-users are already contributing #45 billion a year in taxes, a figure that represents 11 per cent of the Government's revenues.
"It is hardly surprising, therefore, that Gordon Brown turned up for the launch of the new Mini at Oxford," he said.
Referring to plans to extend congestion charging in London, Mr O'Donnell said: "One wonders where it will all end.
"The principle of road-pricing seems to be accepted in political circiles but it is not clear what will be the benefit to the country."
He welcomed the recent Stern Report on the economic impact of global warning, but said the UK could solve the problem on its own.
"Even if we achieved zero emissions, within two years China's new emissions will have filled the void."
Mr O'Donnell went on to call for "sensible fiscal measures rather financial penalties" as a way of ensuring that the global competitiveness of industry in the UK, which already has some of the highest taxes in the world, is not damaged further.
He also urged the Government not to give ground on the country's opt out from the European Working Time directive.
"It is music to my ears to hear the French complain that the opt out is giving the UK an unfair advantage and let us hope the Government stands firm on this advantage," he added.
Figures from BMW group headquarters in Munich yesterday showed that worldwide sales of BMW, Mini and Rolls-Royce cars rose by a marginal 0.2 per cent last month to 108,881.
Sales for the first ten months of the year were three per cent ahead, however, at 1,097,114.
The company said it had come "one step closer to reaching its sales objective of setting a new record in 2006".
Sales of core brand BMW cars rose by 2.4 per cent to 94,983 units in October, helped by the updated version of the top-selling BMW 3 Series car.
Mini brand sales fell by 12.6 per cent to 13,821 vehicles ahead of the launch of the new generation of the iconic small car in just over a week's time.
Mr O'Donnell, in his speech to journalists, said: "We are set to achieve another record in the UK this year."
In a market three per cent down, BMW was currently four per cent ahead at 95,000 units and was likely to achieve a total of 115,000.
He added: "The Mini success continues. The first generation of this amazing car sold out with two weeks of the launch of the new car still to go without us even having to offer any run-out incentives."
BMW expects growth in the months ahead due to the relaunch of the 3 Series coupe and the new-look X3 mid-size offroader.