UK new car registrations rose by 5.3 per cent in 2012 to 2.04 million -- the highest level since 2008, new figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed.
The rise in new car registrations was boosted by a 12.9 per cent rise in private demand and is the highest percentage rise in new car registrations since 2001.
But, despite this, the new car market is still 14.9 per cent below its pre-recession peak in 2007, when 2.4 million new cars were sold.
Paul Everitt, SMMT Chief Executive, believes 2013 will be another good year for UK car sales, saying: "We anticipate the market will hold firm, with manufacturers and dealers working hard to deliver quality and value to motorists."
The Ford Fiesta was the biggest selling car of 2012, followed by the Vauxhall Corsa, Ford Focus, Vauxhall Astra and VW Golf. Nissan's Qashqai was the sixth bestselling model, with the BMW 3 Series, VW Polo, Mercedes C-Class and BMW 1 Series rounding off the top ten.
The UK automotive industry contributes around £12bn to the UK economy every year and employs more than 700,000 people.