The SMMT says it is crucial that incentives are in place if its work to deliver a zero-emission future are to meet expectations.
Sales of alternatively-fuelled cars have fallen in the UK for the first time in 26 months as the industry works towards an electric car future.
The Society of Motor Manufacturers and Traders (SMMT) said total sales of new cars continued to decline, for the fourth consecutive month, in June.
It reported falling demand in all sectors – with a 4.8% drop in consumers picking up a new model. Business registrations fell 37%.
It meant, the body said, that overall year-on-year demand was down by almost 5% in the month, with just 223,421 cars being ordered.
The weak performance meant sales were 3.4% down in the first half of the year compared to the same period in 2018.
The SMMT blamed continuing “confusion over low emission zones and diesel, the removal of key ultra low emission vehicle incentives and an overall decline in buyer confidence”.
It pointed to growth in June for petrol and battery-powered vehicles.