Car sales have risen by over seven per cent since last year, the BBC reports. There were nearly 60,000 new registrations in August and sales of smaller cars have risen by a third, according to the SMMT.

August is typically a slow month for car sales, with the launch of new registration plates in September.

SMMT chief executive Paul Everitt said that new car registrations rose last month for the first time since June last year.

"August represents a relatively small share of the new car market", said Everitt, "and the September new 61-plate registrations will be far more important for the UK motor industry, accounting for about 17% of the full year's registrations."

However, the outlook for car sales "remains challenging", according to the SMMT. Overall registrations for the year are over six per cent lower than last year.