UK car sales showed healthy growth in June, although industry group the Society of Motor Manufacturers and Traders (SMMT) said government help is still needed to ensure the momentum is carried through to the second half of the year.

New car registrations were 10.8 per cent higher in June than they were in the same month in 2009.

Increases have now been recorded in each of the last 12 months, with the growth for the first half of 2010 put at 19.9 per cent.

According to SMMT chief executive Paul Everitt, this can be attributed to rising business confidence and an upturn in the UK economy.

"The new car market continued to perform above expectations in June," Mr Everitt confirmed.

"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."

Meanwhile, the general trend in continental Europe was for a fall in domestic car sales as national governments started to phase out incentive schemes designed to protect the car industry from the effects of the global economic downturn.

In Italy, figures released by the country's Transport Ministry show 170,625 new cars were registered in June.

This represents a drop of 19.2 per cent on the level seen in June 2009, when 210,972 new cars were registered.

Similarly, new car sales in France slipped by 1.2 per cent last month, with 240,587 units registered.

The news came soon after it was announced that the car scrappage scheme credited with breathing new life into the sector in 2009 was being scaled back.

Domestic car sales in Germany also plummeted, with 289,400 vehicles sold in June.

According to the Verband der Automobilindustrie (VDA), this constituted a fall of 32 per cent on the equivalent figure recorded a year earlier.

However, overall production of German cars actually increased by ten per cent in response to growing demand from overseas.

Indeed, the country's exports rose by 26 per cent in June to 395,000 vehicles.

"Foreign trade is undoubtedly the industrial engine at the moment," confirmed VDA President Matthias Wissmann.

"We are seeing international markets pick up much more rapidly than many had expected. The drivers of growth are above all Asian markets."

As an illustration of this, sales of cars, sport-utility vehicles and multipurpose vehicles in China last month were up by 10.9 per cent at 839,228 on levels seen the year before.

Even so, Bloomberg reports that this was the slowest increase in passenger vehicle sales ever recorded by the China Automotive Technology & Research Center, which started to publish data on a monthly basis in April.

April and May saw increases of 34 per cent and 25 per cent respectively, with the reduced rate of growth attributed to rising inflation in the country which has had a negative impact on demand.

The annual rate of inflation in China was recorded at 3.1 per cent in May - its highest level for 19 months - with Tim Dunne, an analyst at JD Power and Associates, expecting the government to take action to subdue the economy.

This could have an adverse impact on demand for cars, he suggested in a recent report seen by the news provider.

"The government will continue its tightening measures to cool down the economy in the second half of the year," Mr Dunne commented.

"We therefore expect vehicle sales to slow to a more sustainable pace following what has largely been incentive- driven strong growth."

Asian demand also impacted on car production in Mexico, with total exports from the South American country rising by 109 per cent to 177,575 units.

In response to this, production at manufacturing plants in Mexico was ramped up by 102 per cent to 206,195 cars and light trucks.

However, the Mexican Auto Industry Association also revealed that growth in the domestic car market was more subdued.

June saw 59,909 vehicles sold in Mexico, which was seven per cent more than in June 2009.

"The dynamism of Mexican exports explains the significant increase in production, with growth (even) from levels prior to the crisis," AMIA said.

Further south, Brazil saw car sales slump on levels recorded in June last year.

According to Anfavea, the Brazilian Motor Vehicle Manufacturers Association, 262,758 vehicles were delivered to customers last month, which was 12.5 per cent fewer than in June 2009.

That said, car sales were higher last month than they were in May, while output was up by 7.7 per cent on June last year.

A different picture emerged in nearby Argentina, where sales to local car dealerships soared by 42 per cent, Dow Jones reports.

Figures released by Adefa, the Argentine Automobile Manufacturers Association, show 60,940 units were sold to local car dealerships last month, up from 42,965 in June 2009.

Meanwhile, annual production is on target to hit 680,000 units in 2010, up from approximately 513,000 in 2009.

"The automotive industry continues to account for more than a third of the growth in the entire industrial sector and represents 34 per cent of all industrial exports," Adefa President Cesar Rojas told Dow Jones.

Finally, Ford's Canadian division posted its best sales figures for a decade in June, with car sales up by 15.7 per cent on the year before.

In an interview with Reuters, Ford of Canada Chief Executive David Mondragon noted that the performance was particularly impressive given the events of 2009.

"The Ford brand posted a 25 per cent increase (last) June when the industry was down 14 per cent, so a 16 per cent gain for Ford of Canada in the month of June (2010) is extremely significant," he said.

Chrysler Canada also announced encouraging results, with sales in June more than doubling as it bounces back from its financial troubles.

Sources:

Car sales rise despite end of scrappage scheme (06/07/10)

Italy June car sales down 19 pct, Fiat share 30 pct (01/07/10)

French June New Car Sales Fell 1.2% as Government Incentives Phased Out (01/07/10)

German car sales plunge in June, exports climb (02/07/10)

China's June Car Sales Growth Slows to 10.9% as Government Tightens Credit (05/07/10)

Mexico's June Auto Production Doubles To 206,195 Units (07/07/10)

Brazil auto output falls in June; sales rise (12/07/10)

Argentina's Auto Production Continues To Soar (06/07/10)

Ford Canada posts best month in a decade in June (02/07/10)

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