Demand for new cars was down by 4.2 per cent in November year-on-year, the latest figures from the Society of Motor Manufacturers and Traders have revealed, although diesel and alternatively fuelled cars took record market shares during the month. New registrations for November totalled 134,027 units, marking the ninth decline in the year. With these figures pointing to testing times for motor traders, it is becoming more important than ever that they protect their businesses with adequate Staveley Head trade insurance and make provisions for the future to capitalise on the growing popularity of hybrid and electric vehicles. Diesel cars achieved a record 55.6 per cent share of the new car market in November, while alternative fuel vehicles took 1.6 per cent - a new record over the 1.3 per cent recorded in the corresponding month in 2010.

"Despite the Chancellor delaying the 3p rise in fuel duty, our cost of fuel is still among the highest in Europe, so customers are sure to welcome the 29.3 per cent improvement in new car fuel efficiency over the last 10 years," said Paul Everitt, chief executive of the SMMT. He went on to say that this improvement represents a "demonstration of industry’s commitment to delivering good value to motorists".

However, in spite of this impressive new ground in market share, it seems the electric and hybrid market is not immune to the wider problems in the motor trade - even with the backing of government incentives. New figures from the Department for Transport showed that only 106 electric cars were purchased in the third quarter of 2011 through the government's "plugged-in car grant" scheme, which has provided consumers with up to £5,000 towards the purchase of low-emission cars since January. This may be due in part to the small selection of vehicles available - just five models, including the Nissan LEAF, can currently be bought using the grant, although this will expand to a total of ten over the course of next year.

With fuel costs remaining high and increasing investment in electric vehicle infrastructure, such as charging stations, it seems 2012 could be the year alternatively-powered cars really take off in the UK. Marc Rinkel, senior analyst at market research firm IHS Automotive, told the Guardian it is still "early days" for electric vehicles, and the downturn in the economy has not helped to encourage risk-taking among motorists.
"In the medium term most motorists will still buy diesel and petrol cars, so making these [conventional] vehicles run on less fuel must be the top priority," added Tony Bosworth, transport campaigner at Friends of the Earth.
"But electric cars powered by clean energy are one of the key ways to get ourselves off the fossil fuel hook - and away from pricey petrol - in the long run."

Fleets continue to support the electric vehicle industry, with courier firm FedEx recently announcing a two-month trial in London of vehicles using technology from the Nissan LEAF as part of plans to reduce its impact on the environment. The company currently operates 43 all-electric vehicles across its worldwide fleet.