New car registrations in the UK rose 10.8 per cent year-on-year in June, a much higher rise than expected after the government-backed scrappage scheme was withdrawn earlier this year.
A total of 195,226 units were registered in the UK in June; 0.7 per cent of these were from cars ordered under the scrappage scheme, compared to 19.2 per cent in the same period last year.
Registrations are now up 19.9 per cent year-on-year for the first six months of the year and June was the 12th consecutive monthly rise in sales.
Paul Everitt, the SMMT’s chief executive, is encouraged by the continued growth in sales, but warns that there will be tougher times ahead in the second half of the year.
“The results indicate improved business confidence and a strengthening economic recovery,” he said. “The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery.”