The number of new cars registered last month was 177,664 — a 1.1% decline compared to October 2014 — according to data from the Society of Motor Manufacturers & Traders (SMMT)(www.smmt.co.uk).

This was the first fall in sales for a record-breaking 43 months. However, the UK’s new-car market remains robust, with sales for the year to date of 2,274,550, up 6.4% on the same period of 2014.

SMMT chief executive Mike Hawes said: “The UK car market has gone through a period of unprecedented growth, and so far, 2015 has been a bumper year, with the strongest performance since the recession.

“As expected, demand has now begun to level off, but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers. The current full-year growth forecast remains on track.”

Howard Archer, chief UK and European economist at the IHS business-information group, said: “While it is obviously disappointing to see a record run of year-on-year increases come to an end, October’s dip needs to be put into perspective.

“It was unrealistic to expect car sales to keep churning out year-on-year growth rates, given that the comparisons are now coming from a high base.”

Mr Archer also pointed out that the fall in sales followed a “very strong” month, with September being one of the best months of the year for car sales, due to the registration changes.

He said: “New car sales went through the two million mark in September for the first time since 2004. October’s sales were still at a very respectable level.”

Sales of Volkswagen brands — including VW, Seat, and Skoda — all fell last month in the UK amid the German automotive manufacturer’s emissions scandal. Sales of VW-branded cars fell by 9.8%, Skoda declined by 3% and Seat sales dropped by 32.2%.

Mr Hawes said: “Given the issues Volkswagen has been experiencing over the last six weeks or so, some small adjustment was to be expected.”

Volkswagen has now lost 40% of its value since admitting in September that it installed ‘defeat devices’ in 11 million diesel vehicles.