More than 366,100 new cars were registered in March 5.9% up on the forecasted decrease in sales for this period, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
Year-on-year sales were down by 7.9%, but the slowing of the decrease is seen as a positive trend in new car sales.
March is generally a strong month for new car registrations, with the new 11-plate becoming available.
Record drop in CO2
The first quarters average CO2 emissions, were also revealed they were the lowest-ever figures with a decrease of 3.4% to 140.3g/km.
The cut in emissions could be attributed to the rise in popularity of diesel cars, which enjoyed a 7.1% increase in sales over those in March of 2010. Registrations of petrol cars dropped by a similar margin.
Top 10 best-sellers in February 2011
BMW 3 Series