Almost 2.045 million new cars were registed in 2012, compared with just over 1.941 million for 2011, industry body the Society of Motor Manufacturers and Traders (SMMT) said in a statement.

That marked a gain of 5.3 percent, the biggest annual percentage increase since 2001.

"More than two million new cars were registered in the UK during 2012 the best result since recession struck in 2008," said SMMT Chief Executive Paul Everitt.

"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."