The UK car market grew by almost 11% in August continuing an 18-month streak of rises.
The Society of Motor Manufacturers and Traders (SMMT) said 65,937 new cars were registered in the UK in August, up 10.9% on July.
The news will be welcomed by economists and government ministers looking for evidence that the UK is emerging from the financial crisis.
The best selling cars in the UK in 2013 were the Ford Fiesta (75,413), the Ford Focus (57,129) and the Vauxhall Corsa (53,284), the figures showed.
SMMT chief executive Mike Hawes said: "UK new car registrations have now risen consecutively for a year and a half.
"Private fleet buyers are clearly capitalising on attractive deals and new technologies against a backdrop of increasing economic confidence.
"Ahead of the September plate change, August always has far fewer registrations, but the 10.9% rise this month bodes well."
The figures showed that some 1,391,788 cars had been registered in the UK in the year to date.
The car manufacturing industry has been hit hard by the financial crisis.
In October 2012, car manufacturer Ford laid off some 4,300 workers across Europe - 1,400 in the UK - as it sought to cut costs in the face of weakening demand for vehicles.
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