The downturn in new car sales slowed in February, with a drop of 7.7% to 63,424 new registrations, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
The drop is 6% smaller than predicted and was helped by a sharp increase in demand from company fleets.
February is a typically slow month for car sales, with private buyers opting to wait until the new registration plate is released in March.
Figures also show the small family car sector has declined, while registrations of executive and luxury cars have increased.
Diesel models also remain popular, making up over 50% of new registrations.
Top 10 best-sellers February 2011
BMW 3 Series