Last month’s figures for new car registrations in the UK were the largest gain of the year since January – increasing by just under 5 per cent (4.9) to 176,277 units and confounding industry predictions in the process.
The rise was helped by diesel sales, which pushed year-to-date registrations by 2.4 per cent to 1,443,576 units, according to the latest SMMT figures.
Diesel registrations now hold a 41.2 per cent share of the total number of new cars registered, thanks to the year-to-date increase of 6.6 per cent.
Christopher Macgowan, chief executive of SMMT, commented: "Trying to predict the spending habits of the motorist is tricky and July has given us a challenge."
"In spite of interest rate rise concerns and the traditional quiet holiday period, new car registrations have exceeded expectations."
Fleet car registrations rose by to 94,751 units (5.8 per cent rise), while the total number of cars brought privately was also up to 70,258 units.
Figures showed that the Ford Focus regained the title of the country's best-selling model by knocking off the Vauxhall Astra, which came second, in the process.
The SMMT has had to revise its 2007 sales forecast by 20,000 units, due to a combination of booming diesel volumes and rising sales of superminis - which have increased by five per cent over the first seven months of 2007.
The trade body said it remained cautious over its outlook for the remainder of the year following a hike in interest rates to 5.75 per cent in July and added that consumer spending is expected to remain moderate in the second half of the year.
