Car sales jumped by more than 30pc in January as the public feels more confident about big purchases.
Almost 30,000 new cars were registered last month, a rise of 31pc compared with January last year.
The buoyant motor sector is expected to create 2,600 new jobs this year.
The biggest selling models have been the Volkswagen Golf, Ford Focus, Toyota Corolla, Ford Fiesta and Hyundai IX35.
The surge in car-buying was revealed in figures issued yesterday in the quarterly review of the Society of the Irish Motor Industry (SIMI), in association with DoneDeal.
Economist Jim Power, author of the review, said new car sales may even reach 120,000.
"The strong growth in car sales reflects improving consumer confidence and spending across the country," said Mr Power.
SIMI president James Brooks said the motor industry contributed €965m to State coffers last year, which helped create an extra 3,800 jobs in the motor industry, a 10pc rise since 2013.
"We hope that the improved business environment and the continued support of the Government will let the motor industry rebuild itself and will aid its recovery further in 2015," said Mr Brooks.
Figures also highlight the sustained upturn in the motor industry in 2014 with more than 320,000 cars advertised and sold online.
Cathal Cremen, commercial manager of DoneDeal's motor section, said there was an increase of €649m in vehicle sales on the website last year, bringing the total value of goods advertised in the motor sector alone to €3.9bn.
The review showed that more than a third (35.5pc) of cars on Irish roads are over 10-years-old, 40.5pc of cars are between five and 10-years-old, while only 24pc of cars are five years or less.