New car sales in the United States rose 5.2 percent in July, compared to the same month last year.
In annualized terms, the number of new car sales marked the highest level since last August, when the US government introduced a subsidy system for buyers of fuel-efficient cars replacing older models.
US market research firm Autodata said on Tuesday that July's new auto sales came to 1.05 million.
The 3 major US carmakers all saw a rise in sales, with 6.4 percent for General Motors, 5 percent for Chrysler,
and 3.3 percent for Ford.
Among Japanese car makers, Toyota saw a 3.2 percent fall, while Honda had a 2 percent decline. However, the figures were still better than expected.
This is in part seen as a reaction to a sharp increase in sales enjoyed by Japanese auto makers last year due to the introduction of the subsidy system.
US new car sales have been recovering steadily until now, but experts point out that consumers are becoming cautious in their purchases.
Some predict the possibility of a decline in sales in the near future.