Announced today, the figures from the Society of Motor Manufacturers and Traders show 172,907 units were registered last month, up 6.6% compared to July 2013 and leading to an increased forecast for total 2014 figures.

UK car sales Warwick Business School’s Christian Stadler, associate professor of strategic management, commented: ‘The UK car sales growth is in line with the wider trend in Europe. Germany has also been consistently producing good sales figures in recent years.

‘There are two reasons for this: the economic recovery in the UK and used cars are becoming more expensive because there are less around. During the financial crisis fewer cars were bought which means there are now less used cars around.

‘Of Europe’s mass market car producers Volkswagen weathered the crisis best as its strong balance sheet allowed them to offer attractive finance deals and their reputation of reliability matters in hard times.

‘Reducing numbers on the production line is an expensive option, so car manufacturers were prepared to make less of a margin and produce attractive finance deals during the crisis, which are still in place. A strong balance sheet allows companies to do this.

‘Ford, Opel, Peugeot and Renault all have new products in the showroom and might benefit from the upturn now. While Japanese car producers should be watched as they will benefit from a weak Yen.’