The beleaguered motor industry has received a much-needed boost after new car sale figures rose for the first time since April last year.
A total of 157,149 new cars were registered in July - an increase of 2.4% on the July 2008 figure, the Society of Motor Manufacturers and Traders (SMMT) said.
The SMMT said the rise was due to the Government's "cash for bangers" car-scrappage scheme, which was introduced in May.
SMMT chief executive Paul Everitt went on: "The impact of the scrappage scheme is clear and we are encouraged by the positive impact it has had, increasing new car registrations for the first time since April 2008.
"The industry still faces a long road to recovery and we urge Government to take action to sustain economic recovery through easing access to finance and credit and delivering the loan guarantees set out by the automotive assistance programme."
The July 2009 total was 10% above SMMT forecasts but was still 10% below the average for July over the last 10 years.
Despite the rise in July, the new car sales figures for the year so far are down 22.8% compared with the January-July 2008 total.
Sales to private buyers rose for the second successive month - going up 33.4% to the highest July figure since 2004.
The mini sector more than trebled last month compared with July 2008 while supermini volumes rose 15.7%.
The SMMT still expects sales to fall 14.4% to 1,825,000 in 2009 and to decline a further 5% in 2010 to 1.73 million.
