New car sales in the UK plummeted by 20pc last month after changes in vehicle tax rates took their toll on the car industry.

The Society of Motor Manufacturers and Traders (SMMT) said the “significant decline” was due to buyers bringing forward their car purchases ahead of the switch to the new rates.

In total, 152,076 new cars were registered in April, down 19.8pc from the same month last year. The drop-off follows a record month in March, when more than 560,000 new cars were registered.

Analysts said the figures showed that the car sector would “find life ever more challenging” in the coming months, with the scale of the decline catching the industry by surprise.