There were 8.4% more new cars sold last month than in July last year, with sales for the year so far nearly 6% higher than the first seven months of 2006.
The Society of the Irish Motor Industry said there were 13,150 new cars sold in July while sales for the first seven months of the year stand at 166,322.
SIMI CEO, Cyril McHugh, said: 'Despite some commentators talking down the economy, it is clear from car sales that consumer confidence continues to be very strong'.
He said sales of light and heavy commercial vehicles sales are particularly buoyant despite sales of the latter continuing to readjust to the introduction to the tachograph last year.
Tachographs are instruments fitted in the cab of trucks and buses to record the driving times, breaks and rest periods of individual drivers. Since last May they have been mandatory in the EU.
Light commercial vehicle sales for the first seven months of 2007 (35,851) are up 13% year on year and heavy vehicle sales are down 7.74% (4,135).