The UK new car market shrank in January, with 163,615 cars driven off forecourts, a 6.3% fall on the year, according to figures released Monday by the Society of Motor Manufacturers and Traders.
Demand for petrol and alternatively fuelled vehicles rose by 8.5% and 23.9%, respectively, but failed to offset a 25.6% year-on-year drop in new diesel registrations, the group said, adding that "confusion over government policy continued to cause buyers to hesitate."
"The ongoing and substantial decline in new diesel car registrations is concerning, particularly since the evidence indicates consumers and businesses are not switching into alternative technologies, but keeping their older cars running," SMMT Chief Executive Mike Hawes said in a statement.
"Given fleet renewal is the fastest way to improve air quality and reduce CO2, we need government policy to encourage take up of the latest advanced low emission diesels as, for many drivers, they remain the right choice economically and environmentally," Hawes added.
Last year, more than two in five of the cars leaving UK production lines were diesels, while manufacturers also produced more than 1 million engines, SMMT said.
