UK car sales fall again, with JLR down 15 per cent

Just under 81,000 new cars were registered in February – down 2.8 per cent on the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).

And there was worse news for Jaguar Land Rover, as the West Midlands-based luxury carmaker saw sales plunge by 15 per cent.

The SMMT figures show the national drop in car sales was driven by a 23.5 per cent fall in the number of new diesel vehicles bought.

Diesel cars held a market share of just 35 per cent last month, compared with 44.5 per cent in February 2017.

Registrations of petrol cars were up 14.4 per cent last month, while demand for alternatively fuelled vehicles such as hybrids and pure electrics increased by 7.2 per cent.

Some 258,000 new cars have been registered so far this year, a decrease of 5.1 per cent on the same period in 2017.

In November's Budget, Chancellor Philip Hammond announced a tax hike on new diesel cars from April 1.

All diesels are expected to be subjected to a one-band increase in the first-year vehicle excise duty (VED) rate.

This came after the Government unveiled plans to ban the sale of all conventional diesel and petrol cars by 2040.

Environmental groups have called for restrictions on the most polluting cars entering towns and cities with the worst air quality.

February is traditionally one of the quietest months of the year for the automotive industry ahead of the March number plate change.

SMMT chief executive Mike Hawes said: "Although the new car market has dipped, it remains at a good level despite the drop in demand for diesel.

"Consumers should be reassured, however, that the latest cars are the cleanest in history and can help address air quality issues, which is why they are exempt from any restrictions.

"Looking ahead to the crucial number plate change month of March, we expect a further softening, given March 2017 was a record as registrations were pulled forward to avoid VED (vehicle excise duty) changes."

New VED rates came into force on April 1 last year which meant all new cars, except for those with zero emissions, are subject to an annual flat rate charge.

RAC research found the vast majority of drivers buying new cars are paying significantly more following the changes.