The firm’s data shows that in the 29 markets it analysed, registrations were down from 1.18 million in July 2015 to 1.16 million for the same period this year. It added that the two fewer working days in July may have been a contributor to this result, along with the significant decline of two of the largest European car groups, PSA and VW, who recorded a 13.2% and 8.8% fall in registrations respectively.

The UK posted a slight increase of 0.1% which is an improvement on June’s figures. Of the large markets, France and Germany recorded significant drops of 9.6% and 3.9% respectively, whilst the others recorded modest increases, with Italy posting a 2.6% rise and Spain a 4.4% increase.

Volkswagen was the best-selling brand, with 136,393 units registered, accounting for 11.8% of the total market. But in comparison, in July 2015 its volume of 152,863 accounted for 12.9% of the total market. It also recorded the highest drop of any brand in the top ten, falling by 10.8% compared to the same period last year, closely followed by Skoda and Peugeot who both recorded a 10.5% drop. Volkswagen’s fall in demand could be attributed to the emissions issue and anticipation ahead of the launch of the updated version of the Volkswagen Golf at the Paris Motor Show in October.

Mercedes posted the highest increase in the top 10, but this was a modest 3.7%, which saw the brand register 66,153 units in July 2016. Outside of the top ten, Dacia (+11.5%), Suzuki (+19.5%), Mini (+10.7%), Land Rover (+33%), Honda (+15.3%) and Jeep (+11.4%) recorded double-digit growth largely driven by their SUVs.

The Volkswagen Golf was still the best-selling model, with 36,540 units registered in July, but its volume dropped considerably, resulting in the model’s second lowest market share since December 2012. By comparison, the new generation Opel/Vauxhall Astra becoming the fourth best-selling car in Europe, registering 20,954 units, up by 26% on the same period last year. The other big players all posted double digit falls, including the Ford Focus (-12.3%), Skoda Octavia (-17.9%), Peugeot 308 (-19.7%) and the Audi A3 (-25.9%). The Mercedes A-Class and the Volvo V40 were two of the C-segment models that saw an increase in sales.

Felipe Munoz, global automotive analyst at JATO Dynamics, commented: “Despite July’s slightly disappointing results, the full year figures are unlikely to be impacted too severely. The lower growth rates we are currently seeing are likely to moderate the larger growth rates we have seen in some of the biggest markets over the past three years.”