The number of new cars licensed in May jumped by 9.5 per cent to 7,767, compared to the same month last year, according to new figures from the Central Statistics Office.
The total number of second-hand cars licensed was 4,945 last month, an increase of 7.5 per cent.
Ford was the most popular car licensed in May, followed by Volkswagen, Toyota and Hyundai.
The total number of all new vehicles licensed during May was 10,250 compared with 9,070 during the same month last year - an increase of 13 per cent.
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In the private car category, 5,549 licences were for diesel vehicles while 2,120 were petrol in May.
The total number of a new cars licensed in the year to the end of May was 58,890, a rise of 27.4 per cent compared to the same period in 2013.