Sales of new cars within the highest road tax band fell by 15 per cent in 2007 - the lowest total on record.

In contrast, sales of low-emission cars placed in the lowest tax band jumped by 17 per cent.

While hybrids such as Toyota's Prius enjoy a higher media profile, the majority of the 128,646 low-emission cars sold in 2006 were diesels. According to the SMMT, the Peugeot 107 was the top-selling low-emission car in 2007, followed by the Ford Fiesta. The change in consumer buying patterns has coincided with government tax initiatives to encourage greener driving. In March last year the top band of vehicle excise duty rose by nearly 50 per cent when it jumped from £210 to £300. It has been predicted that this figure could reach £400 within the next year. Owners of greener cars were awarded a 30 per cent cut in 2007, as VED dropped to £35 a year.