While sales of new cars that fall within the top tax band fell by 15% in 2007, sales of low emission cars in bands A and B increased by 17%.
Sue Robinson, director of the RMI’s NFDA, said: "Consumers want to do their part to reduce carbon emissions, and many will be looking at where they can make reductions. Their choice of vehicle will have a significant impact.
"Company car drivers are also encouraged via the tax regime governing this segment. All this gives dealers an opportunity to help consumers make the choice, maximize sales, and do their part for the environment all at the same time."