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The February sales tally, which represents one of the first snapshots of U.S. consumer demand, was the strongest since August 2009 when the government's "cash for clunkers" credits spurred a short-lived boom at dealerships.

Auto executives attributed the unexpectedly large gains to both the lure of discounts -- including cheap lease deals -- along with improving consumer confidence and easier credit.

On an annualized basis, the sales rate for the month was 13.4 million vehicles, according to industry tracking firm Autodata. That was up from a sales rate near 12.6 million in December and January.

GM led with a 46 percent sales gain in February, stoked by incentives that also led the industry at an estimated $3,700 in spending per vehicle on average.

Toyota Motor Corp, which was bouncing back from depressed sales a year earlier, posted a 42 percent sales gain. Nissan Motor Co had a 32 percent increase after offering more aggressive discounts of its own.

Sales of trucks, SUVs and other light trucks were up almost 32 percent in February despite the sharpest spike in gasoline prices at the pump since Hurricane Katrina in 2005.

Still, investors remained on edge that a sustained spike in oil prices could push American consumers toward smaller cars or toward delaying purchases as they did in 2008.

That would crimp earnings at the Detroit automakers despite substantial gains over the past two years in rolling out more fuel-efficient small cars, analysts said.

"It's our No. 1 risk and we're not going to lose sight of it," said Paul Ballew, economist for insurer Nationwide. "The domestic automakers still depend heavily on trucks and SUVs for profits."

Shares of Ford Motor Co and GM fell by 2.6 percent ant 1.7 percent, respectively, extending a losing streak that began in early January.

Sales for Honda were up 22 percent. Ford and Chrysler Group lagged the industry, with sales gains of 14 and 13 percent, respectively.

INCENTIVE SPENDING KEY

The success of the aggressive discounts by both GM and Nissan in February raises the prospect that rivals will respond with stepped-up incentives of their own, cutting into projected profits across the industry.

But Ken Elias, a partner at consulting firm Maryann Keller & Associates, said GM had taken advantage of its lower cost base after its 2009 bankruptcy to put pressure on its rivals.