The UK new-car market declined “moderately” in June, with year-on-year demand falling by 3.5%, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT)(www.smmt.co.uk); 234,945 new cars joined British roads that month.

Demand from larger fleets fell by 6.4%, but business buyers with fewer than 25 vehicles ‘on their books’ returned to show-rooms, registering an 11.3% uplift in demand after an 11-month-long hiatus.

Private demand was largely flat, down 0.6%.

Smaller cars remained most popular, with ‘superminis’ and ‘lower medium’ vehicles together taking a 57.4% share of the market.

However, the market for ‘dual purpose’ vehicles (those constructed or adapted for carrying both passengers and goods and designed to weigh no more than 2,040kg when unladen) was the fastest growing, with demand up by some 16.4% — 6,710 vehicles more than in the same month last year.

There was good news for the alternatively fuelled vehicle sector, with a 45% increase in plug-in and hybrid registrations.

Petrol cars also attracted more buyers, with demand up 12.3%.

However, this growth was not enough to offset the continuing decline in diesel registrations, with a fall of 28.2% as a result of continuing consumer uncertainty over future policy towards this technology.

In the first half ofthe year, overall demand was down by some 6.3% to 1,313,994 units.

Mike Hawes, SMMT chief executive, said: “Despite a rocky first six months for the new car market, it’s great to see demand for alternatively fuelled vehicles continue to rise.

"However, given that these cars still represent only one in 20 registrations, they cannot yet have the impact on driving down overall emissions that conventional vehicles — including diesels — continue to deliver.

“Recent Government statements acknowledging the importance of petrol and diesel are encouraging. However, we now need a strategy that supports industry investment in next-generation technologies and encourages motorists to buy the car that best suits their needs –—whatever its fuel type.”