New vehicle sales climbed 5.3 per cent, to 126,665 units, in July compared to the same month in 2008, Statistics Canada revealed Tuesday.

Led by increases in Ontario, sales of both passenger cars and trucks were up.

Sales of North American-built cars, such as these awaiting final assembly in Chrysler's Brampton, Ont. assembly plant in April 2009, increased 15.1 per cent in July, Statistics Canada data shows. (Frank Gunn/Canadian Press)

After hitting a low at the end of 2008, car sales have steadily increased through 2009. On a year-over-year basis, July's sales were still 8.5 per cent lower than July 2008.

Car sales rose by 6.3 per cent to 63,025 vehicles, and North American-built cars were the car of choice, rising 15.1 per cent. That was the largest increase for this category since January 2008. The number of overseas-built passenger cars sold fell 4.4 per cent, a third consecutive monthly decline.

Truck sales, which include minivans, SUVs, vans and buses, increased 4.3 per cent to 63,640 units.

More than two-thirds of the national increase came from Ontario, where sales rose 10 per cent following a slight decrease in June.

Preliminary data suggest car sales held steady in August, the data agency said.