Car sales in Europe rose 1.8% in August with Volkswagen, Ford and Opel benefiting from improved demand in Spain, Portugal and Ireland.
But premium car makers lost ground due to a drop in sales in Germany.
New passenger car registrations in the European Union (EU) and the countries of the European Free Trade Area (EFTA) rose to 701,118 vehicles in August, from 688,464 the same time last year, data from the Association of European Carmakers (ACEA) showed.
A recovery in demand in Ireland, Spain, Portugal and Greece, countries formerly plagued by austerity, helped lift momentum in favour of mass market brands.
Sales of VW branded cars were up 14%, Ford sales rose by 15.2% and Opel registrations increased by 7.5%.
By contrast, August registrations of BMW cars fell 2%, Mercedes-Benz car sales fell 3.9% and Audi registrations fell 7.6%.
Car sales fell 0.4% in Germany, Europe's largest car market which is a traditional stronghold for the German luxury makers.
Europe's car industry is gradually emerging from a six-year slump, with sales bottoming out last year as austerity-hit consumers cut back on expensive purchases.
Aside from the slump in sales in Germany, the slip in registrations among premium car makers may also be down to a shift in sales tactics.
A 26% jump in car sales in Portugal and a 13.7% jump in Spain helped to offset a 2.6% drop in France and a 0.2% fall in registrations in Italy, the latest figures from industry body ACEA showed.
ACEA also released sales figures for July. Passenger car registrations in the EU and EFTA countries rose 5.6% on the year, to 1,081,686 vehicles.
