Britain’s car market was stronger than expected in June, showing a surprise 10.8% rise in registrations, meaning not just a rise in people getting a motor insurance quote for a new car, but also that the car market in the United Kingdom was stronger than expected according to the SMMT (Society of Motor Manufacturers and Traders). However analysts forecast that demand for new vehicles will go back to a negative number during the last six months of the year, with the £2,000 scrappage incentive, which boosted demand among buyers ending. The new business secretary Vince Cable, last week told one newspaper that the emergency in the car making industry was now over and that the car industry could no longer count on any direct government aid.

Registrations of fleet vehicles were 25% higher than in the same period 12 months ago, which shows a continuing recovery in demand from companies, according to the SMMT and whose chief executive Paul Everitt said “The results indicate improved business confidence and a strengthening economic recovery. The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery. There is some inventory building going on. During the depths of the recession most companies cut back quite a lot on inventory so we’re seeing some impact there. But also, this time last year there was such a big rush in scrappage scheme vehicles and private vehicles being sold that that crowded out some of the fleet market.”

The SMMT also reported that the Vauxhall Astra was Britain’s best selling car in June, the first time for almost two and a half years that it has been placed in the number one position. The Astra replaced the Ford Fiesta, which had the highest registrations during the first few months of 2010. Registration of AFVs (alternatively fuelled vehicles) equalled their biggest ever market share, at 1.2%, in June. The number of AFVs increased by 157.4% in the month, and has increased by more than 150% in four of the last six months. Diesel sales have also increased which has helped to sustain total market growth with the Nissan Qashqai continuing to be popular and was the best-selling diesel in June.