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2020.08.0510:22:00UTC+00UK Car Sales Rise On Pent-up Demand: SMMT

UK car sales logged its double-digit growth in July driven by pent-up demand, data published by the Society of Motor Manufacturers and Traders, or SMMT, showed Wednesday.

As dealerships across the UK opened for the first time since February, car registrations grew 11.3 percent year-on-year to 174,887 units in July. This was the first expansion seen so far this year.

Pent-up demand and special offers led to a reprieve for the sector, but overall registrations were still down 41.9 percent from the same period last year, data showed.

Registrations are expected to be 30 percent down by end of 2020, totaling GBP 20 billion in lost sales.

July's figures are positive, Mike Hawes, SMMT chief executive, said. "By the end of September we should have a clearer picture of whether or not this is a long-term trend."

"Although this month's figures provide hope, the market remains fragile in the face of possible future spikes and localised lockdowns as well as, sadly, probable job losses across the economy," Hawes added. The next few weeks will be crucial in showing whether or not we are on the road to recovery.

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