Registrations rose 3.1 per cent year-on-year last month to 449,287 units – the second highest total on record since the twice yearly plate change was introduced seven years ago.

It far surpassed SMMT predictions of 425,000 units and was greater than any of the September markets, second only behind March 2004.

The latest figures from the trade association show that private sales rallied to 225,759 units, marking a 1.5 per cent improvement compared to the same month last year.

The sector accounted for 50.2 per cent of the March new car market compared to fleet sales which had a 42.3 per cent share with 189,884 units.

Business sales reached 33,644 units, equivalent to a 7.5 per cent share of the market.

Diesel demand continued to grow – oil burners posted 4.4 per cent growth in March.

Each sector recorded sales growth during the month with the exception of the SUV and mini segments.

The Ford Focus remained the UK's best-selling vehicle with sales of 24,751 units and it is also the best selling vehicle for the year to date.