U.K. Sales Post Fifth Straight Monthly Gain in July

The U.K. economy may be struggling, but the country’s auto industry is roaring ahead with July sales up 9.3% to 143,884 units for the fifth monthly gain in a row and the best result so far this year.

With sales over the first seven months rising 3.5% to 1,201,564 units, the Society of Motor Manufacturers and Traders raises its full-year forecast by 20,000 to 1.97 million, up from 1.94 million in 2011.

The full-year forecast, however, suggests “a slight slowing of demand in the second half of the year,” SMMT CEO Paul Everitt says in a statement.

“International economic stability remains a concern for vehicle manufacturers and the U.K. market, but intense competition and new, fuel-efficient products are creating great opportunities for motorists.”

The Ford Fiesta remained the market leader with 7,533 deliveries in July, raising its year-to-date total 15% to 67,103. The Opel Corsa followed with 5,809 sales and a 7-month total of 52,956.

The July result was the strongest gain in the U.K. since the scrappage-boosted increase of July 2010.

SMMT says that after volumes were skewed by the incentive scheme, pent-up demand and the availability of new products have helped boost new-car sales in 2012. “The growth has come despite an unsettled economic backdrop, with disappointing (gross domestic product) figures and constrained consumer and business spending.”

Alternative-fueled car sales surged 45.9% to 2,079 units as new products became available.

Demand for gasoline cars climbed 13.1% to 69,304 units and was bolstered by a 93.4% surge in the minicar segment to 5,105, again reflecting new-model activity.

SMMT says commercial-vehicle deliveries saw an 8.1% increase in July to 22,353 units. Van sales improved 10.2% to 18,913, but small-truck registrations fell 2.2% to 3,440.

“Truck registrations showed signs of stabilizing after almost two years of consistent recovery from recessionary lows,” Everitt says. “The van and rigid-truck markets still have a way to go to hit pre-recession levels, but volumes have grown since October 2010 to reach levels not seen since 2008.”

Year-to-date, the CV market was down 4% to 165,935 units. Van sales declined 7.8% to 138,699, but the truck market jumped 21.5% to 27,236.

U.K. market leader Ford saw a 1.6% uptick in July new-car sales to 18,527 units for a 7-month total up 3.8% to 168,905. Ford’s CV deliveries rose 6.8% in July to 5,806 units, but its 7-month result was down 11.1% to 37,183.

Ford’s industry-leading Transit commercial van accounted for 18.7% of the total CV market in July. The Transit held 17.6% of the CV market year-to-date, while its nearest challenger had just 5.6%.