August Boost Tempers Yearlong Sales Decline in U.K.

New-car sales in the U.K. reversed a 13-month decline in August, when deliveries rose 7.3% over like-2010 to 59,346 units.

Private demand grew 10.7% in August, its first increase since June 2010, as the mini segment jumped 34.5% and supermini deliveries rose 17.6% to account for 37.3% of the month’s sales.

U.K. auto makers say the increase in August deliveries over like-2010 won’t be enough to head off a projected 5% decline in full-year sales.

After eight months, U.K. new-car sales were off 6.1% at 1,220,618 units.

Society of Motor Manufacturers and Traders CEO Paul Everitt says August accounts for a relatively small share of the new-car market and September, with a 17% share of full-year sales, will be far more important.

Despite the year-over-year increase, August is expected to post the year’s smallest monthly sales volume. Deliveries for the month were more than 20% below the 1999-2010 average.

Everitt says that because the August increase was influenced by a low base and small volume, optimism has to be tempered.

“Consumers are nervous about the future, but with industry offering unprecedented improvements in fuel economy, competitive finance offers and a wide variety of new models, buyers will find there is something to suit every taste and pocket,” Everitt says in a statement.

The auto makers organization says downgraded economic growth forecasts mean the outlook for the new-car market will remain challenging. It forecasts the full-year market to end at 1.93 million units, down 5% from like-2010 and below the current 1.95 million running rate.

Sales of diesel cars rose 4.7% in August to 30,475 units, but their market share slipped from 52.6% last year to 51.4% as sales of gasoline-powered cars grew 10.8% to 28,263 units.

Year-to-date, diesel sales are up 6.5% to 613,866 units for 40.3% of the market, while deliveries of gasoline-fueled cars are off 16.6% to 591,693 units for a 48.5% share.

Ford of Britain was the August sales leader with 8,663 units, ahead of Vauxhall’s 6,980 units and Volkswagen’s 6,238.

Through the first eight months of 2011, Ford has sold 171,278 units for a 14% market share, ahead of Vauxhall with 150,641 units (12.3%) and VW with 114,209 (9.4%).

The Ford Fiesta remains the U.K.’s best-selling model, both in August (3,213 units) and year-to-date (61,551).

Ford’s Focus dropped to third for the month with 2,858 deliveries, but remains second year-to-date with 52,918 units.

Van and truck registrations rose 22.8% in August to 13,051 units and increased 21.5% over the year’s first eight months, to 185,862 units.

Van sales rose 22.8% to 10,640 units in August and are up 20.9% year-to-date at 161,040 units. The small-truck segment rose 23.0% to 2,411 units for an eight-month increase of 25.4% at 24,822 units.