Official figures show that the number of new cars registered in Ireland last year rose by 2.4% compared with 2010.
The Central Statistics Office said 86,932 new cars were sold last year, compared with 84,907 in 2010.
Though car sales have risen for two years in a row, they are still well below the 146,470 recorded in 2008.
Sales earlier in the year were boosted by the scrappage scheme, which ended at the end of June.
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For December, 597 new cars were registered, a fall of 7.7% compared with the same month a year earlier.
In 2011, of the 86,932 new private cars licensed, 26.7% were petrol and 71% diesel. The highest number of new private cars licensed in 2011, classified by make, was Toyota (11,065) followed by Volkswagen (11,007), Ford (10,108) and Renault (8,478).
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