With the impact of the COVID-19 epidemic easing, the UK car market is finally experiencing its first positive monthly growth this year, with new car registrations up 11 per cent in July. In Italy, by contrast, new car sales fell 11 percent in July after incentives for new cars introduced in August prompted consumers to hold on to their cash.

Britain's car market is expected to fall by 30% this year after rising for the first time this year

The UK economy is showing signs of a gradual recovery after a historic 25 per cent contraction in March and April. Car dealerships in Britain, Northern Ireland, Wales and Scotland have been reopening their doors to customers since June, after closing in mid-March.

The Society of Motor Manufacturers and Traders said pent-up demand had boosted sales of 174,887 vehicles in July.

"By the end of September, we should have a clearer picture of whether this is a long-term trend," Mike Hawes, SMMT chief executive, said in a press release. The SMMT is understood to have been lobbying for more government support for the industry, including a scrapbook scheme to encourage cars to be scrapped.

July's increase was the first increase in the UK car market since December 2019, but demand has so far fallen by more than 42 per cent. The SMMT's latest forecasts show UK car sales falling by about 30 per cent over the full year.

In particular, In July, sales of Ford, the UK market leader, rose 10 per cent, while those of Volkswagen, the number two, rose 2.9 per cent. Audi, in third place, is up 16%. BMW and Mercedes finished third and fourth, with sales up 24% and sales down 15%, respectively.

Meanwhile, Vauxhall sales were down 6 per cent; Hyundai motor's registrations fell 4 per cent, while sales at its sister brand kia rose 28 per cent. Jaguar rose 9.2 per cent, Land Rover 38 per cent and Mini sales climbed 49 per cent.

In Italy, sales fell 11 percent in July as the government increased incentives

New car sales in Italy fell 11 per cent to 136,455 units in July; From January to July, the accumulative automobile sales volume was 720,620 units, a decline of 42%. Dataforce, a market-research firm, predicts that sales will total 1.225 million vehicles this year, down 700,000 from 2019. To that end, the Italian government introduced a stimulus package that began Aug. 1.

Under the plan, consumers who scrap vehicles that have been at least 10 years and buy a euro 40,000 or less vehicle with a CARBON dioxide emission of 110 grams per kilometer or less, which is certified by Euro 6, will receive a euro 3,500 (about $4,125) subsidy. Buyers of zero-emission cars will also be offered incentives of up to 8,000 euros.

Roberto Gualtieri, Italy's economy minister, said a further stimulus package totalling €25bn would be approved in August, including more money for the car industry.

In The Italian car market in July, premium brands performed well. BMW's sales rose 38 percent, Volvo's 30 percent, Mini and Porsche's 25 percent and Audi's 2.5 percent.

In addition, Volkswagen's sales rose 0.2 percent, Sida's 5.4 percent and Skoda's 6.3 percent.

By contrast, Fiat Chrysler and Renault's brands have declined. At PSA Peugeot Citroen, all but the DS premium brand saw double-digit declines, with sales up 61%.

Among Asian brands, Toyota's sales fell by 10% and Nissan's by 31%. Hyundai's sales rose 0.4 per cent, while its sister kia brand fell 17 per cent.