UK new car registrations grow 3.3% in August

The United Kingdom experienced an improved growth of 3.3% in new car registrations in August, despite economic uncertainty in the aftermath of Britain's vote to leave the European Union in June.

According to new data from the Society of Motor Manufacturers and Traders, August's year-on-year growth rate was significantly higher than July, which registered only a 0.1% growth. In June, the percentage actually fell for the first time in eight months.

81,640 new cars were registered in August, a total which takes the amount for the year to date up to 1.68m.

SMMT chief executive Mike Hawes said that the result was welcomed in a typically quiet month for manufacturers.

"August is traditionally one of the quietest months as consumers look ahead to the September plate change, so growth, albeit small, is good news," said Hawes. "With showrooms full of exciting models featuring the very latest technology and a raft of affordable finance options, it still makes economic sense to consider buying a new car."

The United Kingdom chose to leave the European bloc earlier this year, in a move which was predicted by many economists to lead to a downturn in the country's finances, but markets have largely been able to cope with the political uncertainty.

"The key to maintaining this strong market is consumer confidence for which we look to government to deliver the conditions for economic growth," Hawes added.

September is likely to be a crucial month for the industry, as it tends to be a fruitful one as many drivers are coaxed into buying by the change of number plates.

According to IHS Global Insight's Howard Archer, the real test for car manufacturers and traders comes in the long term, as the UK shows short-term doggedness in the face of Brexit difficulties.

"There is still a long, uncertain road ahead which could increasingly weigh down on fleet operators willingness to buy new cars," Archer said.