The market dipped by 2.2 per cent to 185,797, a shortfall of 4,205 units, as dealers weighed up the impact of May's interest rate rise - the fourth since last August - on consumer spending. Year-to-date volumes were 2.2 per cent ahead of 2006 at 1,044,436 units but the SMMT predicted the new car market is on course to finish the year at 2.335m units, which will be 0.4 per cent down on 2006's grand total.

Demand for diesel-engined cars, led by the fleet sector, continued to grow with sales to date increasing by 27,181 units, or 7.2 per cent. Diesel market share now stands at 40 per cent, with the Ford Focus remaining the best selling diesel model for the month and year. The month proved a mixed bag for volume, prestige and budget brands.

Ford, Vauxhall, Renault and Volkswagen all saw sales slip, while Audi, BMW and Land Rover all experienced significant growth.

1. Ford Focus - 11,460 2. Vauxhall Astra - 9,111 3. Ford Fiesta - 8,350 4. Vauxhall Corsa - 6,336 5. Peugeot 207 - 5,292 Source: SMMT

Kia, which enjoyed a massive sales surge from 2000-2005, saw sales tumble by 17 per cent pushing year to date sales down 27 per cent. Hyundai also felt the pinch with a 25.6 fall for the month and a 20 per cent drop for the year.