“We are now seeing concerns about rising fuel bills and household costs dampening consumer confidence leading to slower demand for new cars. This slow-down is not unexpected, but signals an increasingly tough retail environment,” said Paul Everitt, SMMT Chief Executive. “Cost pressures, environmental concerns and technological advances, have ensured consumers have taken the choice of buying more efficient vehicles and record numbers of cars are now in the lowest CO2 VED bands. The share of cars in the A band has increased more than tenfold in the past year.”

‘Uncertainty over the rising cost of motoring, along with higher overall living costs, have made consumers more cautious about buying a new car, but this could be eased if Government clarified its intentions towards the motorist,’ according to Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), commenting on car sales figures for June 2008.