The SMMT said new car registrations fell roughly 1.3% year-on-year to 84,575 last month and also cautioned that September car sales would be "critical", with this month seeing the release of the new 74 number plates.

However, demand for battery electric vehicles rose 10.8% in August as buyers took advantage of summer discounts. SMMT also noted that it expects BEV market share to rise to 18.5% from its current rate of 17.2% by the end of 2024, with a forecast of about 364,000 BEV registrations this year.

Fleet purchases made up six out of ten cars registered in August despite a 1.2% year-on-year drop.

"August's EV growth is welcome, but it's always a very low volume month and so subject to distortions ahead of September's number plate change. The introduction of the new 74 plate, together with a raft of compelling offers and discounts from manufacturers, plus growing model choice, will help increase purchase consideration and be a true barometer for market demand," said SMMT chief Mike Hawes.

"Encouraging a mass market shift to EVs remains a challenge, however, and urgent action must be taken to help buyers overcome affordability issues and concerns about chargepoint provision."