UK car sales suffered a dismal November, but sales of diesel-powered vehicles have continued to grow, it has been revealed.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) show a continued increase in demand for diesel cars, with penetration now at a record 42.2 per cent of the UK market.

Part of the reason behind the rise in diesel sales appears to be the fact that buyers are currently able to take advantage of a three per cent tax waiver before the beginning of 2006, as well as the fact that diesel is now seen as a cheaper alternative as oil prices soar.

However, there was less impressive news in the car market overall, as new car registrations during November fell by 7.9 per cent compared to 2004, while the number of cars built in the UK also fell by 14.5 per cent on the previous year, although the collapse of MG Rover has had some impact on this.

"We had forecast a spike in diesel registrations as company car buyers rush to beat the end of the three per cent surcharge waiver," commented Christopher Macgowan, chief executive of the SMMT.

He continued: "As we enter the final month of the year, it will be interesting to see if this month's spike gets bigger."


Ÿ Adfero Ltd