New car registrations saw a 6% increase up to 67,006 units which marks the second successive month of growth in the UK.
According to the latest figures from the Society of Motor Manufacturers and Traders, the scrappage scheme accounted the further growth the market is seeing and builds on the 2.4% rise in new car registrations in July.
The scrappage scheme accounted for 25.1% chunk of August new car registrations with 16,848 units sold.
Paul Everitt, Society of Motor Manufacturers and Traders chief executive, said: “New car registrations in August increased for the second successive month, providing welcome news for the UK motor industry.
“The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead. It is essential that these early signs of recovery are sustained into 2010.”
Despite growth, the 2009 August market was still over 10,500 units below the 2007 outturn and 15% off the 78,800 market averaged between 1999 and 2008.
August typically accounts for just 3.3% of annual new car registrations.
September, with the plate change, accounts for an average of 17% of the market. The recent success of the scrappage scheme suggests volumes should rise from last year’s very weak showing.
Registrations over the first eight months of 2009 remain down 21.5% or 315,014 units, and over the past 12 months volumes have fallen by 530,125 units.
Private demand rose by 50.5% in August, albeit on a weak 2008 performance.
The mini and supermini segments once again showed surging growth, up 252.8% and 16.9% respectively in August. Sports and dual purpose segments also recorded strong growth, up 25.8% and 10.1% respectively, in the month.
The Ford Focus was the best selling model in August, ahead of the Fiesta and Hyundai i10. Ford’s Fiesta was the best seller over the year-to-date.
To download the latest new car registration figures for August from the SMMT click here.