See how sales have declined since 2005

The gas-guzzling “Chelsea tractor” has suffered a sudden decline in sales after a succession of threatened tax rises, The Times can reveal.

Existing owners of 4x4s are facing substantial losses because the second-hand value of the vehicles has also dropped significantly.

The Society of Motor Manufacturers and Traders will announce today that sales of new 4x4s fell by more than 15 per cent last month compared with November 2005, and have fallen in every month this year except March. Sales in the year to date are down 6 per cent compared with growth of 4 per cent last year. By contrast, sales of small cars and people carriers are up significantly.

Until this year the market for 4x4s had had a decade of uninterrupted growth, with sales more than doubling from 78,000 in 1996 to 187,000 last year. Motoring groups blame this year’s decline partly on growing public resentment of 4x4 drivers, a sentiment whipped up by environmental groups. The Government and local authorities have also sent signals to motorists that large, fuel-inefficient vehicles will be penalised with extra taxes.

In March, the Chancellor introduced a new top rate of vehicle excise duty of £215 for the most polluting cars. The rate applies to band G vehicles, which emit more than 225g of carbon dioxide per kilometre. These include the BMW X5, Land Rover Discovery, Mitsubishi Shogun and Toyota Land Cruiser.

Drivers of fuel-hungry cars will be hardest hit by a statement from Gordon Brown today that fuel duty will rise by about 1.2p a litre in line with inflation, ending a three-year freeze. The Chancellor is not expected to take special action over 4x4s but is known to be monitoring the market closely. In July Ken Livingstone, the Mayor of London, revealed that he was considering trebling the congestion charge for band G vehicles, to £25, from 2009. In October Richmond-upon-Thames said it planned to treble parking permit costs for band G cars, to £300 a year.

Glass’s Guide, the leading guide to second-hand car prices, said that 4x4s were depreciating much faster this year than in previous years. A one-year-old BMW X5 is now worth only £38,800, compared with a purchase price of £63,397. A year ago a one-year-old X5, which cost £62,542 new, was worth £40,450.

Ian Archer, owner of Harringtons of Fulham, West London, said the high cost of fuel was also a factor.“It is always a difficult thing to tell an owner that their car is losing £1,000 a month.

“The Chelsea mums used to go for them but they now want something more environmentally friendly, like the Toyota Prius,” he said.

The RAC Foundation said much of the criticism of 4x4s was ill-informed because some smaller models, such as the Honda CRV and Toyota RAV4, were more fuel efficient than many people carriers and large saloons. Edmund King, the foundation’s director, said: “The demonisation of 4x4 drivers has been unfair because many chose one after considering the safety of their kids. But drivers should think carefully about which vehicle fits their needs and environment.”

US research has shown that someone hit by a 4x4 is more than twice as likely to die than if hit by a saloon car at the same speed. But the vehicles are much safer for their owners: government figures show that drivers of small and medium-sized cars are 50 times more likely to be killed in collisions with another car than drivers of 4x4s.

Sian Berry, co-ordinator of the Alliance Against Urban 4x4s, said the group’s campaigning appeared to have succeeded. “But there is a hard core who don’t care about the environmental impact or the hazard they pose to pedestrians and cyclists.”