Over the last three and six months, the market was up 3% and 2.8% respectively in 2007, according to the latest figures revealed by the Society of Motor Manufacturers and Traders.
Diesel registrations hit a record high in November taking 45.3% of the market with 71,835 units sold.
Christopher Macgowan, SMMT chief executive, said: "2007 has seen the new car market recover slightly, but we are still a long way from the records set in 2003.
"It is really encouraging to see the growth in diesel registrations, and this is expected to exceed 40% of the total market by the end of 2007."
The Ford Focus returned to the top of the best sellers list in November, a position it also holds over the year-to-date.
Mini volumes doubled in the month and it took eighth place in the best sellers list. Superminis recorded a 2.8% growth over the year-to-date.
Audi, BMW, MINI and Nissan recorded impressive gains in November. Over the year-to-date Audi, BMW, Mini and Vauxhall have seen the strongest growth – a reflection of the popularity of new products.
Sue Robinson, director of the RMI National Franchised Dealers Association (NFDA), part of the Retail Motor Industry Federation (RMIF), said: "The increase car sales increase shows that there is still life in the new car market, but with consumer confidence fragile, the Bank of England’s decision to cut interest rates was the right call."
New car registrations
Registrations by sales type
Top 10 best sellers