The UK’s Society of Motor Manufacturers & Traders reports that new-car registrations reached their highest level in 10 years in September. A total of 425,861 new cars were registered — a 5.6% increase over August, and the biggest monthly increase since 2004.

Total UK car sales for the year to date rose to 1,958,196, and September’s increase marks the 31st consecutive month of growth.

The Ford Fiesta (23,266 sold) was the best-selling car in September, ahead of the Ford Focus (13,508), the VW Golf (13,011), the Vauxhall Corsa (12,506) and the VW Polo (10,312).

The SMMT said that the UK is on track for a total of 2.45 million new-car registrations this year, which would be the highest level recorded since 2004.

Speaking about the figures, SMMT chief executive Mike Hawes said: “Demand for the new ‘64’ plate has been boosted by growing confidence in the UK economy, with consumers attracted by a wide range of increasingly fuel-efficient cars.”

Cheap finance and discounts are credited with providing a sales stimulus that has seen the UK market reinforce its position as the second-biggest in Europe for new cars (after Germany).

Howard Archer of IHS Global Insight said: “The economic fundamentals still look largely positive for the motor industry. However, low earnings growth could become a constraint for private car sales.” He added that consumers may be worried by the prospect of interest rate rises.

The SMMT figures also revealed that the van market for the year to September grew by 18.1% compared to 2013. September saw 49,123 registrations, taking cumulative registrations for the year to 242,071. Truck registrations fell by 12.3% in September, continuing the trend for the year to date — down 20.3%.

The September figures also reveal that electric cars, hybrids and other alternatively fuelled vehicles (AFVs) are increasing in popularity. A total of 9,955 AFVs were registered in September, a 56% increase on the same time last year. This accounted for 2.3% of the total market — a 44% year-on-year rise.