New car sales rose by over 7% last month
There were 59,346 new car registrations in August, 7.3% more than the same month in 2010, with increased demand from private and fleet buyers.
But despite the increase, the Society of Motor Manufacturers and Traders (SMMT) said the outlook for the industry remained "challenging."
Sales from January to August were down by 6.1% on the previous year, but the August increase followed 13 months of decline.
The Supermini segment jumped by 17.6% to account for 37.3% of the August new car market, said the SMMT.
Chief executive Paul Everitt said: "August represents a relatively small share of the new car market and the September new 61-plate registrations will be far more important for vehicle manufacturers and franchised dealers.
"The September new car market is always important for the UK motor industry, accounting for around 17% of the full year's registrations.
"Consumers are nervous about the future, but with industry offering unprecedented improvements in fuel economy, competitive finance offers and a wide variety of new models, buyers will find there is something to suit every taste and pocket."
The Ford Fiesta was the top-selling new car in August with 3,213 registrations, followed by the Vauxhall Corsa (2,901), the Ford Focus (2,858), the VW Golf (1,995), BMW 3 Series (1,739), Vauxhall Astra (1,613), VW Passat (1,526), VW Polo (1,467), Nissan Qashqai (1,312) and Audi A3 (1,125).
The Ford Fiesta is also the top-selling new car in the year to date (61,551), followed by the Focus (52,918), Corsa (46,620), Golf (39,385), Vauxhall Insignia (31,063), Polo (28,048), 3 Series (27,298), Qashqai (24,695) and Peugeot 207 (21,402).
Sales of new cars in August last year (55,305) were the lowest on record, with growth last month reflecting a recovery in the private sector.
The SMMT forecast that sales for the full year will be around 1.93 million, 5% down on last year, saying that the outlook for the new car market remained challenging given the downgrade in economic growth forecasts.
Around 2,000 more diesel cars were sold last month than petrol versions.
David Raistrick of Deloitte said the increase had come as a "welcome surprise", adding: "While fleet sales have held firm in 2011, retail sales have been down and with a combination of the holiday season and private buyers waiting for the new registration plates to be introduced in September, it was never expected to be a great month.
"August generally represents a relatively small share of the new car market, with September being a far more crucial month for the automotive retail industry.
"After nearly a year of falling sales, I expect September to mirror the August increase and we are likely to see numbers slightly up from last year.
"This is due to a number of different factors including several new models coming on stream, interest rates remaining low and a tipping point having now been reached - the point where it makes sense to buy new, with private consumers having held off for a considerable time.
"Adding to this, the manufacturers are continuing to do well, with steady demand from external markets like Russia and China counteracting the slowdown in new car sales across Europe and North America.
"Looking to the future, our forecast is for a good September with a rise over last year."
PA
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