The number of new private cars licensed in the first month of 2007 rose more than 19 per cent on last year's figures.
According to the Central Statistics Office, some 29,296 new private cars licensed in January 2007 compared with 24,579 a year earlier.
Toyota topped the list of manufacturers, accounting for 4,065 new registrations, followed by Ford with 3,621, Volkswagen Opel, Nissan and Peugeot made up the rest of the top five.
The first licensing of second-hand private cars also experienced a surge, showing a 28.6 per cent rise on 2006 figures.
The total number of all vehicles licensed in January 2007 grew 21.1 per cent, when compared with the same month in 2006. Some 4,768 new goods vehicles were licensed in January 2007, compared with 3,898 in 2006.
Opposition politicians have criticised the Government for the increase, blaming it on the lack of public transport services.
"These latest figures signal ever growing congestion in our city's streets accompanied by increased carbon emissions. Twelve thousand of the 29,000 new cars bought in January were registered in the two major cities of Dublin and Cork. The figures for February are equally astounding and show no sign of a let-up," said Fine Gael Transport Spokeswoman Olivia Mitchell.
"Clearly, young people coming into the jobs market perceive that mobility, both social and economic, can only be assured through car ownership. Infrequent bus services, and often the lack of any services at all, even in densely populated areas, leaves huge numbers in our growing cities with no choice but to turn to car ownership.