The UK new car market declined for a seventh consecutive month in October, with 158,192 new units registered, according to figures released by the SMMT.
Demand fell by -12.2 per cent in the month, as falling confidence among buyers continued to impact the market.
Declines were seen across all sectors, with business and fleet demand down -26.8 per cent and -13.0 per cent respectively.
Meanwhile, dealers reported -10.1 per cent fewer private buyers taking delivery of new cars in the month.
Alternatively Fuelled Vehicle (AFV) demand continued to rise, up 36.9 per cent to 8,244 registrations, while petrol models enjoyed a more modest growth of 2.7 per cent.
However, these gains were unable to offset heavy losses in the diesel segment, as continuing consumer concerns resulted in its biggest hit yet, with demand down -29.9 per cent.
Mike Hawes, SMMT chief executive, said: “Declining business and consumer confidence is undoubtedly affecting demand in the new car market but this is being compounded by confusion over government policy on diesel.
“Consumers need urgent reassurance that the latest, low emission diesel cars on sale will not face any bans, charges or other restrictions, anywhere in the UK.
“We urge the Government to use the forthcoming Autumn Budget to restore stability to the market, encouraging the purchase of the latest low emission vehicles as fleet renewal is the fastest and most effective way of addressing air quality concerns.”