Sales hit 163,898 units last month, with the market down 5.5 percent so far this year, in line with expectations, the Society of Motor Manufacturers and Traders said.

Registrations have recorded ups and downs in the first seven months of 2018, impacted by the sharp decline in demand for diesel and uncertainty over the outcome of Brexit talks, the SMMT has said, but in July there was modest growth.

"The feel-good factor from a sun and sport-packed July, combined with some fantastic deals on a raft of exciting new models, clearly helped keep showrooms relatively busy last month," said SMMT Chief Executive Mike Hawes.

(Reporting by Costas Pitas; Editing by William Schomberg)