Registrations of new cars rose by 12.4% last month, figures show.
Industry body the Society of Motor Manufacturers and Traders said 357,103 new cars were registered in the UK in March.
That compares with 317,786 during the same month last year.
March is a key month for the automotive industry as new registration plates are introduced, which traditionally leads to higher demand.
Uptake of pure battery electric new cars reached a record monthly total of 69,313 units.
This represented a market share of 19.4%.
Under the Government’s zero emission vehicles (Zev) mandate, at least 28% of new cars sold by each manufacturer this year must be zero emission, which generally means pure electric.
The Government is analysing feedback from a recent consultation on proposed changes to the rules, which includes making it easier for non-compliant manufacturers to avoid fines.