Britain's new car registrations increased 17.7 percent year on year to 464,824 units in March, registering the biggest month in a decade, said the Society of Motor Manufactures and Traders (SMMT) on Friday.
SMMT noted that March is typically the biggest month in a year, accounting for almost a fifth of a full-year's registration.
Mike Hawes, chief executive at SMMT, said March's figure is a "surprisingly strong" level of growth and a reflection of intensifying consumer confidence and the availability of great new products.
"Given the past six years of subdued economic performance across the UK, there is still a substantial margin of pent-up demand that is contributing to a strong new and used car market," said Hawes.
"There has never been a better time to buy a new car thanks to attractive finance deals and advanced technologies that often make new cars cheaper to run," he added.
The SMMT expects the market to continue to perform positively for the rest of the year, albeit at a more modest rate.
The best seller in March is Ford Fiesta, followed by Ford Focus and Vauxhall Corsa, said the SMMT