Year-on-year volumes increased marginally by 0.7 per cent to 1.544 million units, buoyed by increased sales in the emerging Eastern European countries. According to ACEA, new European Union members saw a combined increase in sales of 21.1 per cent, which exceeded the overall Western European market loss of 0.6 per cent.

The increase follows four months of declining sales.

Italy +8 per cent UK +1.5 per cent Spain -1.6 per cent France -2.6 per cent Germany -7 per cent Source: ACEA

Of the five major new car markets Italy and the UK were the only countries to record an increase – sales rose by 8 per cent to 226,057 units in Italy and 1.5 per cent to 222,863 units here. Germany's new car market declined by 7 per cent – a hangover from the VAT increases that came into effect in January this year.

France and Spain's overall figures also slipped by 2.6 per cent and 1.6 per cent respectively. Car manufacturers also produced a mix set of results in June. Honda celebrated the biggest rise in registrations as sales soared by 23.5 per cent year-on-year. The Fiat Group maintained its renaissance - posting a 9.9 per cent increase - helped by the strong performance of the Punto Grande. Elsewhere, Ford recorded a sales decline of 4.8 per cent and the Renault Group maintained its poor performance in 2007 as registrations fell 9.5 per cent to 741,287 units.