New car registrations across Europe fell for the first time in 34 months in July, new data from JATO Dynamics has revealed.

According to the organisation's latest monthly market update, new car registrations across the continent fell by 2.3 per cent in comparison to the same month last year. The downturn marked the end of of one of the longest sustained periods of growth for the sector in recent memory.

The data revealed Greece saw the largest market gains during July this year, with an annual growth rate of 34.6 per cent, this positive shift was echoed in other markets, including Hungary (14.9 per cent), Cyprus (13 per cent) and Ireland (8.5 per cent).

However, several of Europe's biggest markets suffered a significant fall in new car sales in July, most notably France (9.6 per cent), the Netherlands (eight per cent) and Germany (3.9 per cent). It was this negative momentum in major markets that has caused this contraction in growth.

Responding to the July result, global automotive analyst at JATO Dynamics Felipe Munoz concluded: "Despite July's slightly disappointing results, the full year figures are unlikely to be impacted too severely.

"The lower growth rates we are currently seeing are likely to moderate the larger growth rates we have seen in some of the biggest markets over the past three years."

Looking forward, new car buying activity is expected to stabilise during the remainder of the year, with the SUV sector in particular expected to drive sales growth.