The UK’s new-car market declined for a seventh consecutive month in October, with 158,192 new units registered, according to figures released by the Society of Motor Manufacturers and Traders (SMMT) (www.smmt.co.uk).

Demand fell by 12.2% compared to October 2016, with business and fleet demand down 26.8% and 13.0% respectively, while dealers reported 10.1% fewer private buyers taking delivery of new cars (again compared to October 2016).

Alternatively Fuelled Vehicle (AFV) demand continued to rise, up 36.9% to 8,244 registrations, while petrol models enjoyed a more modest growth of 2.7%. However, these gains were unable to offset heavy losses in the diesel segment, with demand down 29.9%.

For the first 10 months of the year, the overall market was down 4.6% on 2016 levels, with 2,224,603 cars registered. This aligns with SMMT’s latest forecast for 2017, which says that the market is expected to end the year on 2.565 million units – a 4.7% decline.

Mike Hawes, SMMT chief executive, said: “Declining business and consumer confidence is undoubtedly affecting demand in the new-car market, and this is being compounded by confusion over Government policy on diesel.

"Consumers need urgent reassurance that the latest low-emission diesel cars on sale will not face any bans, charges or other restrictions — anywhere in the UK.

"We urge the Government to use the forthcoming Autumn Budget to restore stability to the market, encouraging the purchase of the latest low-emission vehicles, as fleet renewal is the fastest and most effective way of addressing air-quality concerns.”