Co-op Motor Group has driven sales up by 6.3% to £143.6m in the first half of this year.
The improvement was revealed in a trading update of its parent Co-Operative Group, which also highlighted that its subsidiary's successful rebrand from Sunwin won it the best marketing initiative award at the AM Awards this year.
It described the business was performing well, given the difficult nature of the market.
With an emphasis on ethical trading, Co-Op Motor Group has implemented a strategy of cost reduction for its customers during this tough economic period, with reduced labour rates and interest-free finance for major repairs among its initiatives.
Earlier this year the group's general manager Tony Guest told AM the business is focused on providing value for Co-Op members and is benefiting from its links with Co-Op Group's other business steams.