The Society of Motor Manufacturers and Traders (SMMT) says new car sales have risen every month for the past two years.
The increase means new car sales lifted 17.4 per cent over the 24-month period.
The report said February saw a three per cent rise in new registrations to 68,736, as consumer confidence continues to grow.
It revealed the best-selling car in February was the Ford Fiesta, which recorded 4,415 sales, followed by the Vauxhall Corsa with 3,138, and Vauxhall Astra, which saw 2,707 sales.
In figures looking at sales for the year-to-date, the Fiesta has 13,487 sales and the Ford Focus 7,889.
The Nissan Qashqai and Juke, which are both made at the Japanese plant's Sunderland factory, recorded year-to-date sales of 4,079 and 3,733 respectively.
Mike Hawes, SMMT chief executive, said: “The three per cent rise in February marks two full years of continuous month-on-month growth.
“That is a real endorsement of consumer confidence and the attractiveness of the new car market.
“While February is typically a quieter month ahead of the March registration plate change, we expect the arrival of the new 14-plate and increasing economic confidence to maintain a steady rate of growth.”
Earlier this week, The Northern Echo revealed Nissan will make an updated version of its Juke model at its Wearside factory from the spring.