HALF of Britain's motor dealers believe the type of cars they stock will change as a result of the changes to company car tax system , a survey has revealed.

The report, commissioned by vehicle remarketer GRS, found that 50% of dealers thought their stock profile would change, due to an increase in demand for smaller, lower emission cars and fewer company cars on the road. Mike Pilkington, sales and marketing director for GRS, said: 'The changes in car tax legislation will create more retail buyers of new and used vehicles. With larger vehicles no longer proving the status symbol they once were, demand for small to medium vehicles will undoubtedly increase and impact on the profile of the UK forecourt.'

The opinion that there will be fewer company cars on the road flies in the face of recent figures that showed sales had hit an all- time high, with first quarter fleet sales this year up 7.1% on last year to 296, 704 new cars. Business sales, to companies with 25 cars or less, raced up 15.7% to 70,460.

However, the first quarter figures did reflect dealers' views that the type of car was changing, with smaller cars becoming more popular and diesel sales up 55% year on year.