SMMT chief executive Christopher Macgowan says June's record new car registration figures are a sign of unparalled competitiveness in the industry.
New car sales figures show a rise of 11.4% in June to a record 215,325 units.
This is the biggest half year sales figures ever, 1,269,028 units - 4.3% up on last year.
Mr Macgowan said: "This is the fourth time in less than a year that new car registrations have set a record. It shows the industry is working hard to be more competitive than ever. Consumers continue to support their local franchised dealers and, as nine months of growth shows, are confident the best deal on a new car is available here in the UK.
Alan Pulham, RMI's franchised dealer director, said: "All indications point to 2001 being a record year for car sales easily matching, if not exceeding the 2.3m seen in 1989."
Private buyers took 47% of the total June market (100,720 units) compared to 42% (82,024 units) last June.
Total registrations by private buyers for the year-to-date reached 617,861 units, up 18.8% on the 519,888 units for the first six months in 2000.
Fleet sales rose by 4.8% in June to 93,667 units.
Last month's registration total beat 1979's previous high of 200,172 units by 7.6%.
Top 10 registrations in June 2001 (units)
1. Focus 11,407
2. Fiesta 10,118
3. Astra 9,959
4. Corsa 8,804
5. Megane 7,924
6. 206 7,341
7. Mondeo 6,863
8. Vectra 6,664
9. Xsara 6,237
10. Punto 5,908
Year-to-date (units)
1. Focus 71,525
2. Astra 53,216
3. 206 52,224
4. Fiesta 49,725
5. Mondeo 48,204
6. Corsa 45,948
7. Megane 39,016
8. Clio 37,873
9. Punto 35,308
10. Vectra 34,994
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