Volkswagen finished ahead of Toyota and Ford.
According to figures from the Society of the Irish Motor Industry (SIMI), Volkswagen registered 10,073 new cars in 2012 (12.67% market share), ahead of Toyota's 9,998 (12.58% market share) and Ford with 8,592 (10.81% market share).
"We are delighted to be now, officially, the number one car brand in Ireland," said Volkswagen Passenger Cars Deputy Brand Director, John Donegan.
Volkswagen's Group Ireland Managing Director, Simon Elliott, added: "We are very proud to be the best-selling car brand for 2012 and it is an indication of just how shrewd the Irish buyer is when it comes to choosing cars that they are increasingly putting their trust in Volkswagen."
Volkswagen has also just released its all-new Golf onto Irish forecourts, starting at €19,995, and there is an array of offers available to Volkswagen customers for 2013.
Competitive finance rates from Volkswagen Bank has seen it lend in excess of €120m to Irish customers to date.
There is a 3.9% APR available on Hire Purchase, as well as PCP (Personal Contact Plan) rates available from €119 per month.