Figures released by SIMI show that new car sales for January, at 21,078, are 29 percent up on last year.
SIMI's Director General Alan Nolan says last month's increase 'is a strong indication that the Government Scrappage Scheme is incentivising people to buy new cars'.
January is the busiest month for car sales and sets a precedent for the rest of the year. Feedback from dealers confirms that interest in Scrappage has been very strong so far this year and SIMI expect that demand to continue until the end of June when the scheme ends.
January sales have resulted in a €30 million revenue to the state, according to Mr Nolan.
C02 emissions have fallen again with the average car bought has 129.37 emissions (Band B).
Commenting on the outlook for the remainder of this year, Mr Nolan said it had been a great start 'but it is very early days to draw any firm conclusions'. He added there is great confidence in the sector and levels are likely to be similar to last year. But there will be a clearer picture at the end of Quarter 1.
He said if this trend continues, it will see a further increase in employment in the industry.
Last year saw 88,000 new car sold and 2010 scrappage account for 20 percent of sales.
