The UK’s new-car market experienced a 1.6% year-on-year decline in January, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT) (www.smmt.co.uk).

A total of 161,013 new cars were registered for use on UK roads, with trends in fuel choice seen last year continuing in the first month of 2019.

Following a decline in December, private buyers registered 71,378 models in the month, a 2.9% year-on-year increase, but demand from business and from fleet buyers fell by 33.5% and 3.4% respectively.

Demand for alternatively fuelled vehicles grew by 26.3%, resulting in a total market share of 6.8%; this demand supports the latest forecast for this sector, which is expected to rise by more than 25% by the end of 2019 to around 177,000 units.

It is anticipated that some 86,000 of these cars will be ultra-low-emission plug-in hybrids and battery electrics, taking plug-in market share to around 3.7% as an ever-increasing number of models come on sale.

However, the SMMT says that this level is still at the lower end of UK government ambitions, underlining the need for greater purchase incentives and investment in charging infra-structure.

Demand for petrol cars also grew in January — up 7.3% — but this was not enough to offset another month of decline for diesel, as registrations fell by 20.3%.

Diesel cars made up 29.1% of registrations in January this year, compared with 35.9% in January 2018. The best-selling car was the Ford Fiesta (5,399), followed by the Ford Focus (4,397) and the Nissan Qashqai (4,270).

Mike Hawes, SMMT chief executive, said: “It is encouraging to see car registrations in January broadly on a par with a year ago, as the latest high-tech models and deals attracted buyers into showrooms.

However, January was still the fifth consecutive month of overall decline in the market.

"To restore momentum, we need supportive policies — not least on vehicle taxation — to encourage buyers to invest in new cleaner vehicles that best suit their driving needs, from the latest petrols and diesels to an ever growing range of electrified vehicles. This would be good for the environment and good for the industry — and those who depend on it.”

Meanwhile, the new light commercial-vehicle (LCV) market grew by 8.6% in January, with more than 22,000 new vans and pick-ups joining UK roads in the first month of the year — 1,761 more than in January 2018.

Moreover, all segments saw growth in the month, except medium vans weighing 2.0-2.5 tonnes, where demand fell by 3.9%.

Car-derived vans weighing less than 2.0 tonnes and pick-ups both saw double-digit increases — by 31.7% and 13.4% — boosted by new model introductions and sales campaigns.

Demand also grew for large vans weighing 2.5-3.5 tonnes, increasing by 7.1% to 13,268 vehicles.