New car registrations were up 10.8% in June with registrations to fleets rising by over 25%.
The fleet market rebounded in June, up 25.3% on the volume recorded a year earlier, whilst business sales - those to businesses with fleets of under 25 vehicles - rose by 18.4%.
The new car market overall was up 19.9% during first half of 2010.
The market is up despite the end of the scrappage scheme, although the industry warns that volumes are set to slip in second half of 2010.
“The new car market continued to perform above expectations in June, with fleet sector registrations up 25% compared to this time last year," said Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders.
"The results indicate improved business confidence and a strengthening economic recovery.
"The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery.”
The latest figures, which were released this morning, show that new car registrations climbed by 19.9% in the first half of 2010, up by over 180,000 to 1.1 million units.
Volumes in the latest quarter were up 11.8%.
Last month was the twelfth successive monthly increase, despite just 0.7% of registrations coming from the scrappage scheme, compared with 19.2% during the same period last year.
This June was 16% above the level forecast by SMMT in April, but was 8.5% off the 1999-2009 average.
Other highlights include the fact that alternatively-fuelled vehicle (AFV) registrations matched their largest ever market share, at 1.2% in June.
AFV volumes rose by 157.4% in the month and have grown by over 150% in four of the past six months.
There was also a rise in diesel sales, which helped sustain total market growth.
The Nissan Qashqai was the best selling diesel in June.
The Vauxhall Astra was the best selling model in June, its first number one slot since February 2008.
Ford’s Fiesta had the highest registrations over the first half of 2010.
With the exception of the mini and executive segments, growth was evident across the board. The strongest rises were in the MPV, luxury saloon and lower medium sectors.