The fall was in stark contrast to sales in April, which rose 9.6 per cent year-on-year.

The market has taken a downturn since May, however when sales dropped 7.8 per cent.

Over the first half of the year sales were down 2 per cent on the same period in 2007.

“Rising inflation and soaring fuel prices were among the main factors influencing new registrations,” said Acea.

In the big five markets France and Germany bucked the trend in June, rising by 1.5 per cent and 1 per cent, respectively.

The UK, however, was down 6.1 per cent, while Italy and Spain endured eye watering slumps of 19.5 per cent and 30.8 per cent respectively.

Across Europe, 1,427,008 new cars were registered in June.

The VW Group commanded a 19.9 per cent share of the market despite a 6.1 per cent downturn.

The PSA Group took a 12.8 per cent share but saw sales drop by 9.7 per cent.

The GM Group, Europe’s third largest stable of brands, also took a hit - down 13.1 per cent – as it accounted for 10.2 per cent of the market.

BMW was one of the few groups to enjoy an upturn in June - BMW and Mini sales combined rose 1.7 per cent last month and were up 8.3 per cent in the year-to-date.

Ford and Volvo registered a joint rise of 0.8 per cent in June but were down 2.9 per cent in the first half-year.

Former blue oval-owned brands Jaguar and Land Rover dropped 21 per cent in June and 9 per cent in the first six months.

Toyota also continued to slide, falling 18 per cent last month to lag 12 per cent behind its sales in the first half of 2007.

Chrysler suffered the heaviest June fall of 24 per cent.