Exchequer gained extra €171m from new car sales

Figures just released from the Society of the Irish Motor Industry (SIMI) show that this year, new car registrations have generated an extra €171 million in revenue compared to the same period last year, writes Trish Whelan.

Car sales in August (4,873) were up 32 percent on August last year and so far this year, new cars sales have increased by 30 percent on 2013. The increase in registrations in July and August alone generated an additional €68 million for the Exchequer which brings the total for the year from new car sales to €720 million.

In addition, some 4,200 new jobs have been created this year, as a result of the success of the dual registration plate and the overall increase in business.

Alan Nolan, Director General of SIMI said "The real driver in increasing the registrations has been the level of growth in consumer demand, which has not been seen in the Industry for some time." He added that the continued strength of commercial vehicle sales underline the improvement in commercial activity in the economy this year.

New heavy commercial vehicles, although down by 32 percent (63 units) in August, remain ahead of last year by 30 percent (365 units). New light commercial vehicles are up 54 percent (441 units) for August, and 47 percent (4,196) for the year to date.

SIMI predicts new car registrations will exceed 95,000 by the end of this year, and that next year, they will have the potential to generate a further €100 million for the economy on top of this year's growth, and create 1,500 more jobs. However, he said it is crucial that this growth is not stalled by any negative decisions made in this year's Budget.