New car registrations last month rose for the first time in more than a year.

August is traditionally a quiet month ahead of the September plate change, but this year saw 59,346 cars sold, an increase of 7.3 per cent on 2010.

It's the first time that the market has seen since June 2010 and small cars like the Ford Fiesta continue to be in demand. They now account for almost four-in-ten of all cars sold. 

Paul Everitt, SMMT Chief Executive said: "New car registrations in August rose for the first time since June 2010, up 7.3% to 59,346 units. August represents a relatively small share of the new car market and the September new 61-plate registrations will be far more important for vehicle manufacturers and franchised dealers,” said . “The September new car market is always important for the UK motor industry, accounting for around 17% of the full year’s registrations. 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."

The overall outlook for 2011 remains challenging; registrations between January and August were down 6.1 per cent on 2010.