The new car market grew 24.4% in August, the Society of Motor Manufacturers and Traders (SMMT) said.

Some 85,657 new cars were registered last month, compared with 68,858 in August 2022.

Despite this improved performance, the market remained 7.5% below pre-pandemic levels, with 92,573 registrations in August 2019.

Demand for electrified vehicles (EVs) continued to grow, accounting for nearly two out of five new cars reaching the road.

SMMT chief executive Mike Hawes said: “With the automotive industry beginning a second year of growth, recovery is under way with EVs energising the market.

“But with a new zero emission vehicle mandate due to come into force in less than 120 days, manufacturers still await the details.

“Businesses cannot plan on the basis of consultations, they need certainty.

“And now, more than ever, Government must match action to ambition, ensuring there are the incentives and infrastructure in place to convince drivers to make the switch.”

The mandate will require manufacturers to sell a certain proportion of zero emission vehicles.

The proposed levels for new cars are 22% by 2024, 80% by 2030 and 100% by 2035.

Registrations of new cars for fleets were up 58.4% year-on-year last month, but demand from private buyers was down 8.1%.

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “The headline figures are positive, but there’s a clear divide in the market.

“The growth is being almost exclusively fuelled by strongly rising fleet sales, but the proportion of retail sales is softening, underlining the pressure on consumers.

“After years of heavily constrained new car supply struggling to keep pace with consumer appetite, for the first time since the pandemic we’re seeing production exceed demand, which is shown by the flattening retail sales numbers.”

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, said: “Once again, EVs are the shining jewel in the crown, taking up greater market share as more drivers look for greener alternatives to fossil fuels.

“To get even more drivers to make the switch, the Government could look to turbocharge this trend with better incentives and infrastructure.”

August is typically a quieter month for the market as many buyers wait for new numberplates to be released in September.