Sales of green cars are set to overtake gas-guzzlers for the the first time this year.

Rising fuel prices and environmental concerns led to purchases of vehicles in the £300-a-year top road tax band falling by 15 per cent last year to the lowest level on record.

However, sales of low-emission cars in bands A and B, which are either zero-rated for road tax or pay £35, leapt by 17 per cent.

The Society of Motor Manufacturers and Traders predicts that sales of high emission band G cars paying £300, such as the Porsche Cayenne and BMW 7 series, will continue to fall sharply.

The organisation is planning to introduce advertising guidelines that will make CO2 performance much clearer to consumers. The figures come as a study shows that motorists could save more than £300 per year by switching to a more fuel efficient car.

The research analysed fuel, tax, insurance and other costs, and found major savings on green models with improved fuel efficiency and lower exhaust emissions.

"A vehicle's green credentials are fast becoming a major selling point when it comes to buying a new car," said Ashton Berkhauer of uswitch.com which commissioned the study.

It comes as many London boroughs are introducing lower parking charges for fuel-efficient cars. Recent figures also show that 40,000 cars a day are exempt from the congestion charge because of their low emissions, saving drivers on average £2,080 a year.

Experts say this will boost consumer interest in hybrid cars such as the Honda Civic and Toyota Prius. Sales of electric cars such as the G-Wiz have also risen, with celebrity backers such as Jonathan Ross and Jerry Hall

It is estimated there will be 55,900 hybrid or electric cars on Britain's roads this year, although this will still only account for 0.2 per cent of registered vehicles.

Meanwhile, a London company is set to unveil its attempt to make electric cars more attractive. Future Vehicles is to sell £17,500 Minis upgraded to run entirely on battery power.

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