By Jason Theodorou

New car registrations fell 13.2% in July, following 12 successive monthly rises. According to a report from the Society of Motor Manufacturers and Traders, the market remains up by 15.1% over the first seven months of 2010, compared to 2009.

However, the market in July fell by 13.2% or 20,703 units, reflecting in part the aftermath of the scrappage scheme, which had contributed to robust volumes over the previous 12 months.

Diesel shares hit a record high of 50.6% in July. Alternatively fuelled vehicles (AFV) and diesel-fuelled cars both achieved record market shares in July, with AFV volumes rising by 52.6% to take a 1.4% market share.

The market is expected to slow in the second half of 2010, but remain stable over the course of the full year.

Paul Everitt, Chief Executive of SMMT, said: “A drop in private registrations compared to the scrappage-fuelled months of 2009 was expected and has brought the first market decline for 12 months".

“Subdued consumer confidence and a still fragile economic recovery make the outlook for the remainder of 2010 challenging, but a stronger than expected first half means full year volumes are still forecast to exceed 2009’s total.”

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