Volkswagen sales fell sharply in the UK in January following a customer backlash over the diesel emissions scandal that has rocked the German carmaker.

Sales of new Volkswagen-branded cars fell by 14% year-on-year last month, reducing the company’s market share in the UK, which has previously been one of its most successful markets.

Other brands owned by VW were also hit. Seat sales fell 25%, while Skoda’s were down 2.4%. Audi sales, however, increased 1.4%.

The company has admitted installing defeat devices in 11m vehicles to cheat diesel emissions tests. As a result it faces the prospect of having to pay tens of billions of euros in fines and compensation to customers.

VW sales fell despite the British car market enjoying its best January for 11 years.

New car registrations rose 2.9% to 169,678, the best since January 2005, according to the Society of Motor Manufacturers and Traders. This included rises of 3.7% in sales of petrol cars, 0.6% in diesel vehicles, and 32% in alternatively fuelled vehicles, such as electric cars.

Mike Hawes, the chief executive of the SMMT, said: “January’s solid performance puts the new car sector in a good position to start the year.

“Providing consumer confidence remains strong, we expect a more stable 12 months ahead, broadly similar to 2015, which was, of course, a record year.”

The best-selling car during the month was the Ford Fiesta, followed by the Nissan Qashqai and Vauxhall Corsa. Despite VW’s problems, the VW Golf was still the fifth most popular car in Britain during the month and the Polo was seventh.

VW’s market share fell from 8.5% to 7.1%, although it retained third place in the market behind Ford and Vauxhall.