New car sales rose by 11.4% last month to 367 929 vehicles, compared with the same month of 2008, the SMMT announced in a statement. That was the third monthly increase in a row.
The SMMT also welcomed the British government's recent decision to pump more cash into the scrapping scheme, whereby buyers are given £2,000 ($3,200, €2,300) discount when they trade in a car over 10 years old.
"Market conditions remain challenging with demand being underpinned by the extremely successful scrappage incentive scheme," SMMT chief executive Paul Everitt said.
"The extension of the scheme will help to sustain demand through the latter part of this year and into 2010.
"This will allow economic recovery to strengthen and safeguard valuable industrial capability."
Under the new-for-old scheme, which was launched in April, the government and car manufacturers each contribute half of the cost of the £2,000 discount per vehicle.
Business minister Peter Mandelson had announced last week that the scheme would be expanded to £400 million (€433 million, $638 million) from the previous level of £300 million.
The British project is similar to ones introduced in France, Germany and the United States.
The worldwide automaking sector remains in crisis as many consumers steer clear of buying vehicles amid a dire global economic downturn.
Source: AFP
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