Year-on-year UK car sales fell by 0.8% in June, only the second time they have done so since 2012.
It is believed consumers were thinking twice about 'big ticket' items such as cars due to uncertainty over the EU referendum vote.
The last year-on-year fall in sales was in October 2015.
The Society of Motor Manufacturers and Traders said the figure was in line with “expectations that market growth would stabilise following a record 2015”.
However, there is concern that Brexit could impact the economy. A substantial year-on-year sales fall in July may be seen as confirmation of such worries.
It is “far too soon to determine whether the referendum result has had an impact on the new car market”, according to Mike Hawes, SMMT’s chief executive.
But he also said the government would need to take “every measure to restore business and economic confidence to avoid the market contracting in the coming months”.
While news of a year-on-year sales drop seems negative, it may not be excessively bad news for UK car manufacturing. Of the 1,587,677 vehicles built in Britain in 2015, the majority – 1,227,881 – were sold for export.
A weaker pound will make British cars cheaper to buy for consumers in countries like China - the UK’s biggest car export market.
However, the long-term effects on global demand following the so-called Brexit remain to be seen.
Breakdown Cover from 
