Auto sales in the US declined by 12.2 per cent on a year-on-year basis in July but a number of manufacturers posted encouraging transaction levels.

A total of 997,824 vehicles were sold in the country during the month, representing a major improvement on year-to-date sales, which were down 32.1 per cent to 5.8 million.

The figures also revealed that the seasonally-adjusted annual rate was 11.24 million, representing the first time that it has passed the ten million mark so far this year.

General Motors (GM) saw sales decline by 19 per cent - although that was up eight per cent on the total for June - despite being forced to file for bankruptcy recently.

Meanwhile, Toyota's sales were down by 11 per cent on an annual basis but up 32 per cent from the previous month, which beat forecasts from sales tracker Edmunds.com.

There was a similar story at Chrysler, where sales fell by a better-than-expected nine per cent from a year earlier, while also increasing by 30 per cent on levels for June.

Honda's 17 per cent drop in sales was worse than industry estimates of about 14 per cent, although the company also saw transactions up 14 per cent from last month.

Ford, the other 'Big Three' firm, enjoyed a two per cent year-on-year sales rise, while Korean automaker Hyundai reported an impressive 12 per cent increase.

The improvements are largely being attributed to the US government's $1 billion 'Cash for Clunkers' programme, for which the House has now approved a further $2 billion.

Consumers who are prepared to trade in their older, gas-guzzling vehicles when buying a new smaller, more fuel-efficient car are entitled to discounts of up to $4,500.

GM estimates that 118,000 extra vehicles were sold during July as a result of the scheme, while Hyundai revealed that 22 per cent of its sales were from buyers with 'clunkers'.

Mark LaNeve, Vice-President of GM, explained that it expects to continue "this positive momentum in August" if the Senate rubber-stamps the new funding for the programme.

Ford also highlighted the role of the initiative in its sales figures, but also noted that the company was already enjoying a strong revival before it eventually came into force.

"Cash for Clunkers put us over the top," Director of Sales Analysis George Pipas told CNNMoney.com.

"We may have seen the bottom, but we're not out of the woods yet."

Volkswagen of America also revealed that it had sold 20,590 units during July, representing a 0.7 per cent increase from the equivalent period 12 months earlier.

Chief Operating Officer Mark Barnes said: "Volkswagen of America is extremely pleased by how well our clean diesel TDIs continued to sell throughout July and by our highly successful first month of the government-sponsored Cash for Clunkers programme."

Meanwhile, the China Association of Automobile Manufacturers confirmed that overall vehicle sales in the country increased by 63.6 per cent on a year-on-year basis during July.

A total of 1.09 million units were sold - an improvement on the 36.5 rise in June - while passenger car sales jumped by 70.5 per cent from a year earlier to 832,600 units.

Analysts explained that the strong figures were the result of stimulus packages devised by the Chinese government and aimed at encouraging sales of small, fuel-efficient vehicles.

"July was a very solid month as consumer confidence remains strong, but a weak H2 in 2008 was also a factor," Qin Xuwen of Orient Securities told Reuters.

"Still, there is little question that double-digit or much higher year-on-year growth rates can be extended in the remaining months."

Moving to the UK, car sales increased by 2.4 per cent to 157,149 units in July, according to new data released by the Society of Motor Manufacturers and Traders (SMMT).

Although sales so far this year in the country are still 22.8 per cent lower than levels experienced at this stage 12 months ago, the monthly rise was the first since April 2008.

SMMT Chief Executive Paul Everitt explained that the figures were boosted by the government's scrappage incentive scheme, which came into force in May and is worth £2,000 to buyers.

"The impact of the scrappage scheme is clear and we are encouraged by the impact it has had," he said.

"Smaller, lower-CO2 emitting cars are taking the lion's share of registrations, which will have a positive impact in reducing emissions as well as boosting the UK motor industry."

However, he added: "[The] industry still faces a long road to recovery."

Elsewhere in Europe, Spanish automakers' association ANFAC revealed that sales in the country slumped by 10.9 per cent in July compared to the same month a year earlier.

Despite incurring its 15th consecutive monthly fall, the market was boosted by a €200 million subsidy aimed at car buyers, which was launched by the government in May.

Transactions had previously been in freefall - with a 45.6 per cent yearly drop in April - and ANFAC said the scheme should increase full-year sales by about 100,000 units.

In France, a total of 188,635 vehicles were registered during the month, while passenger car sales increased by 3.1 per cent, also aided by scrappage incentives for consumers.

The German government launched a subsidy for buyers trading in older, less fuel-efficient vehicles for their cleaner counterparts in February, offering a €2,500 discount.

According to the KBA motor vehicles agency, this is continuing to stimulate sales activity in the country, with July registrations increasing by 29.5 per cent to nearly 340,000 units.

In addition, registrations between January and July 2009 were just under 2.4 million, representing a rise of 26.6 per cent from the equivalent seven-month period last year.

Meanwhile, in Japan, overall vehicle sales dropped by 4.2 per cent on a year-on-year basis to 289,927 units in July, although the pace of decline was the slowest for 12 months.

According to figures from the Japan Automobile Dealers' Association, Toyota and Mazda saw their sales in the country down by three and 13 per cent respectively.

Again, a $162 billion stimulus measure has improved transactions, with hybrid vehicles - particularly Toyota's new Prius and Honda's Insight - proving popular with consumers.

Elsewhere, passenger vehicle sales in South Africa slumped by 25.1 per cent in July from 12 months earlier, with light commercial vehicle sales decreasing by 23 per cent.

The medium commercial vehicle sector saw sales slide by 46.1 per cent compared to figures for July 2008, while heavy commercial vehicle sales were down by 45.8 per cent.

In India, car and utility vehicle sales increased by about a third in July, representing the best figures since 12 months earlier, according to a new report by Reuters.

Maruti, the country's top automaker, reported a sales rise of 33.4 per cent during the month, meaning it has now posted improved transactions for six months in a row.

Furthermore, overall sales across India's four leading manufacturers - Maruti, Tata, Mahindra & Mahindra and Hyundai Motor India - were up by a third on average in July.

"Besides the improving finance availability in the automobile sector, it is the slew of new launches in the past few months that has helped the automakers to increase their volumes recently," brokerage Sharekhan said in a note quoted by the news provider.

Brazilian national dealers' association Fenabrave said sales were down 4.9 per cent in the country during July, with sales of new cars and trucks falling 0.97 per cent from a year earlier.

Finally, in Mexico, where most of the cars produced are sent to the US, output declined from 25 per cent last month on a year-on-year basis, according to the Mexican Automotive Industry Association.

Sources:

Cash for Clunkers lifts auto sales (03/08/09)

Clunkers Jump-Start U.S. Auto Sales in July (04/08/09)

UPDATE 1-China July car sales jump, strong growth seen ahead (07/08/09)

Clean Diesel Continues to Fuel Volkswagen's July Sales (03/08/09)

Scrappage scheme boosts car sales (06/08/09)

WRAPUP 2-Government schemes boost European July car sales (03/08/09)

UPDATE 1-German new car registrations up 29.5 pct in July (04/08/09)

Mazda Leads Drop as Decline in Japan Car Sales Slows (Update1) (03/08/09)

As cycle bottoms out, auto industry may struggle to meet demand (04/08/09)

India's July auto sales bring cheer; stocks upbeat (05/08/09)

Brazil auto sales fall 4.9 pct in July - dealers (03/08/09)

UPDATE 1-Mexico auto output falls 25 pct in July yr-on-yr (13/08/09)

Ÿ Adfero Ltd