In total, 2.47 million new cars were registered last year, up 9% on 2013 and the best annual performance since 2004.
Sales rose each month last year, with December's rise representing the 34th consecutive monthly jump.
The SMMT said the strong performance reflected the release of pent-up demand from the recession years.
Car sales were badly hit by the economic downturn which started in 2008, with new registrations dipping below two million in both 2009 and 2011.