New figures unveiled by the Society of Motor Manufacturers and Traders (SMMT) found that more than two million new cars were sold across the UK at the highest rate since 2008.
At an increase rate of 5.3 per cent in 2012 compared to 2011, the SMMT reported the biggest increase in sales since 2001, buoyed by strong consumer demand.
Sales of new vehicles totalled 2,044,069 over the last 12 months, including a 3.7 per cent increase in December alone compared with the same month in 2011.
The innovation of fuel-efficient models is one of the driving factors behind the new car market growing at its fastest rate for more than a decade, according to Paul Everitt, chief executive of the SMMT.
"More than two million new cars were registered in the UK during 2012, up 5.3% on the previous 12 months and the best result since recession struck in 2008," he said.
"Boosted by strong consumer demand, the market grew at its fastest rate for 11 years with innovative fuel-efficient cars keeping buyers in showrooms.
"Looking ahead to 2013, we anticipate the market will hold firm, with manufacturers and dealers working hard to deliver quality and value to motorists."
The new Ford Fiesta came out as the best-selling new vehicle of 2012, with over 109,000 models purchased, followed by the Vauxhall Corsa (89,434) and the Ford Focus (83,115).
Last year’s encouraging sales figures also followed a 12.9 per cent increase in demand for new cars on a private basis. However, amid the strong performance of the car manufacturer industry, the new car market is still 14.9 per cent down on the industry’s level of 2.4 million vehicle sales pre-recession back in 2007.
With vehicle owners increasingly searching for a more fuel efficient alternative to drive there is a growing demand for car scrapping services. At ASM our own comprehensive vehicle dismantling workshop prevents hazardous materials from damaging the wider environment, whilst recycles used car parts that can be fitted again for use in another vehicle.