A drive for greater fuel efficiency is among the reasons for the latest rise in new car sales, enjoying a 20th consecutive month of growth in October.
The Society of Motor Manufacturers and Traders (SMMT) said it was now expecting registrations during 2013 to reach a six-year high after 157,314 new cars were sold last month - a 4% rise on October last year.
It took the total number of new registrations in the year to date to just over 1.95 million, a 10.2% rise on January-October last year.
As a result, the society said it was raising its forecast for the year to 2.25 million - well up on 2.07 million cars sold last year and the best year since 2007.
SMMT chief executive Mike Hawes said: "We have now seen 20 consecutive months of growth.
"These sustained rises have been driven by robust private demand, a trend that has given us the confidence to raise our year-end forecast.
"Looking ahead, we anticipate more moderate growth as the market stabilises."
The SMMT said it had noticed a shift in models being bought - away from family cars to smaller vehicles such as the Ford Fiesta, which remained the best-seller in the UK in the year to date with almost 105,000 models sold - well ahead of the Focus and Vauxhall Corsa.
The industry body said buyers were increasingly looking for greater fuel efficiency while demand for larger vehicles was greatest in the multi-purpose category.
It also cited cheaper finance deals, with some as low as £99 per month as another reason for growing interest, while some purchases were likely being funded by payment protection insurance compensation.
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