Confidence in Britain’s car industry will be dented again this week when industry figures reveal another cut in sales forecasts.

The Daily Telegraph understands that the fall in demand for new vehicles is accelerating and will trigger a further downgrade to the Society of Motor Manufacturers and Traders’ (SMMT) market predictions.

One source familiar with the situation described it as “not a crash, but a significant adjustment”.

“Sales figures are looking pretty bloody,” the source added.