July market continues 2005 slowdown, falling 6.6 per cent at 175,277 units
 Year-to-July falls 5.9 per cent, with private registrations down 10.8 per cent
 Diesel registrations buck the market trend, rising 1.5 per cent in July

Christopher Macgowan, chief executive of SMMT, commented, 'The record volumes of the last few years are well behind us. Consumers and manufacturers alike are feeling vulnerable and we don't see any respite in the short to medium term. We are hoping demand will stabilise over the next year and we will once again see a return in consumer spending. However, as the last seven months have shown, times are tough and the motor industry is feeling the pinch.'

The graph shows how annual new car registrations are expected to ease as consumer spending dips. (Source: ONS/Treasury)