There was an increase of 8% in the number of vehicles registered by the Department of the Environment last year.
The figures from the Central Statistics Office show that more than 234,000 vehicles were registered in 2004 - just marginally lower than the record year of 2000.
More than 149,000 were new private cars, an increase of 4.7%.
The Society of the Irish Motor Industry, basing its figures on Vehicle Registration Tax, believes the private car sales are up by more than 6% and predicts that there will be similar growth next year.
Indications are that there has been a significant increase in sales of four by four Sports Utility Vehicles (SUVs).
The AA's Conor Faughnan said the public was prepared to pay extra in price and tax for safety and pleasure benefits.
The SIMI says the vehicle had been 'much maligned' because many sold in urban areas often had a dual use such as business people using them for work and home.
However, Green TD Eamon Ryan said SUVs tend to use more fuel than other vehicles and that the emissions contribute to global warming.
