The Society of the Irish Motor Industry (SIMI) has warned that tax increases in the upcoming Budget could threaten recovery in the industry, which is enjoying its first year of sustained growth since before the recession.
In its latest figures SIMI says that 93,186 new cars have been sold so far this year, an increase of 30 per cent on 2013 with car sales in September up 24 per cent on the same month last year.
"The new number plate has exceeded expectations," says Alan Nolan Director General of SIMI. "We had expected that the second peak would take time to establish itself but we have already seen a strong shift into this second half of the year with the 142 registration".
HGV (Heavy Goods Vehicle) remain ahead of last year by 24 per cent while LCV (Light Commercial Vehicle) registrations have seen the biggest increase, up 48 per cent on 2013 figures. SIMI is concerned that, despite the growth, the industry as a whole is still fragile and any changes to VRT or road tax may have a detrimental effect.
"The industry has seen improved business levels this year and has collected an additional €200 million for the Exchequer from new car sales alone and has created thousands of additional jobs around the country. We have now moved to about 60 per cent of average car sales in pre-recession years but recovery is still very fragile, being dependent on both consumer confidence and levels of disposable income."
Anything else?
Commenting at the recent launch of the SIMI Quarterly Report, economist Jim Power said: "It is clear that the motor industry recovery is making a very positive contribution to tax revenues and employment. It is vital that the Government would do nothing in Budget 2015 to threaten that recovery".