UK sales of diesel cars fell significantly in January, falling 25.6 percent from January last year.
The Society for Motor Manufacturers and Traders has blamed the slump in sales on the “confusion” over government policy, leading to hesitation from consumers.
Sales of petrol cars were more positive, rising eight percent this month compared to a year earlier.
Sales of “alternatively fuelled vehicles” such as electric cars saw an impressive rise of 23.9 percent. They only, however, account for only 5.5 percent of the market.
“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,” said Mike Hawes, chief executive of SMMT.
“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.”
Howard Archer, chief economic advisor to the EY Item Club, said that confusion over government policy was only partly to blame for the fall in January sales.
“Even allowing for uncertainty over government policy on diesel cars affecting fleet sales, it appears that that businesses have become more reluctant to replace or add to their fleets amid a highly uncertain economic and political outlook.”
Archer added that the monthly declining car sales meant “a serious loss of momentum in the sector”.
British car manufacturers are continuing to invest money into diesel cars due to their fuel efficiency. However, controversy remains following rigged emission tests and issues of urban air pollution.
Following the rigged Volkswagen (ETR: VOW3) emissions tests, the car manufacturer faced $2.8 billion in criminal penalties in the United States. In further scandal for the group, it emerged last week Volkswagen carried out controversial animal testing on monkeys.