Car sales rose in August

Registrations of new cars increased by 1.2 per cent last month compared with August 2021, according to the Society of Motor Manufacturers and Traders.

Some 68,858 new cars were registered in the first monthly growth since February.

Land Rover sales were up 4.5 per cent to 1,325 and Jaguar rose one per cent to 610.

MG, which is based at Longbridge, saw a six per cent fall to 1,404.

Volkswagen was the leading brand with 7,099 sales in the month with the Volkswagen Polo the top selling car at 1,902.

Sales of new cars during the year so far are 35.3 per cent down on the same period in the pre-pandemic year of 2019.

August is traditionally one of the quietest months of the year for the industry as many buyers choose to wait for new number plates to be released in September.

The uptake of pure electric new cars is slowing.

Year-to-date registrations are up 48.8 per cent, compared with 101.9 per cent at the end of March.

SMMT chief executive Mike Hawes said: "August's new car market growth is welcome, but marginal during a low volume month.

"Spiralling energy costs and inflation on top of sustained supply chain challenges are piling even more pressure on the automotive industry's post-pandemic recovery, and we urgently need the new Prime Minister to tackle these challenges and restore confidence and sustainable growth.

"With September traditionally a bumper time for new car uptake, the next month will be the true barometer of industry recovery as it accelerates the transition to zero emission mobility despite the myriad challenges."

Ian Plummer, commercial director at automotive classified advertising business Auto Trader, said: "The SMMT's sales figures highlight just how much the industry's ongoing supply challenges remain the key factor holding back the market.

"But energy price rises are beginning to bite ahead of October's surge in the energy price cap, and our data is beginning to show early signs of a waning of appetite for electric vehicles as buyers weigh up higher charging costs against running a traditionally fuelled vehicle."

Richard Peberdy, UK head of automotive at professional services company KPMG, said: "A slight easing of global supply shortages is leading to a welcome increase in UK car production and new car sales.

"But a rising cost of living threatens consumer appetite, whilst rising energy and other inflationary costs are putting pricing under pressure.

"The remainder of 2022 is set to further challenge the UK car industry, despite the welcome easing of component availability."

James Fairclough, cheif executive of AA Cars, said that after a bad start to the summer, August finally brought some encouraging signs of life to the new car market.

“The improvement in sales comes amid further signs of recovery in the supply of new cars, with the number rolling off UK production lines rising for the third consecutive month — a sign that component shortages may be easing.

“Dealers struggled to meet buyer demand for new cars in the first half of the year, and any improvement in supply is a welcome relief.

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, said: “The summer has not been kind to new car sales for the automotive industry. The enduring impact of supply chain issues and the Ukraine conflict continues to restrict output and availability of new cars. Coupled with rising energy prices,low consumer confidence and general economic uncertainty as the public waited for a new PM to be announced, it’s no surprise that sales have fallen once again.

"EV sales still represent the only silver lining to the clouds overhead _ while EV sales are not as strong as earlier in the year, long wait times are not putting off car buyers keen to go electric as soon as they can.”