A record number of low emissions cars were sold in June as sales fell 6.1pc overall to 209,190 and Vauxhall took top spot.

Welsh dealers did better than their English, Scottish and Irish counterparts and saw the smallest decline in  business.

Vauxhall hit 15.32pc of sales, Ford took 13.7pc while Volkswagen were third on 7.38pc.

Fleet sales have overtaken retail and business registrations and diesel sales are up slightly where high mileage users are making an impression on orders. Ford has withdrawn from unprofitable fleet sales and this is reflected in their June figures.

“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.”

The car makers body will reassess its full-year forecasts later this month as it prepares for the British International Motor Show in London.

Top cars in June in Britain were: