A predicted rise in car sales of over 25% this year might not be realized if the government opts to increase taxes on the motor industry in the upcoming budget, it has been claimed.
Car sales figures for July are up 48% with 27,633 vehicles sold compared to 18,711 in the corresponding month last year, according to statistics released by the Society of the Irish Motor Industry (SIMI).
Figures for the first six months of the year indicate a rise in sales of 30% compared to sales in the first half of 2014.
This buoyancy in the market has led to the upward revision of predicted sales to a figure of 123,000 by year’s end. This would represent a growth of 27% on 2014 figures.
However, economist Jim Power has warned against any budgetary measures which could have a negative affect on sales. “Given the upward momentum in the auto sector and the increasingly strong contribution it is making to exchequer revenues, employment and regional economic activity, it is important that budget 2016 should not make any changes that could adversely affect car sales,” he said.
Mark Boggan, president of the SIMI said: “This is the third year of the dual registration plate which has been a real success, allowing the industry to better structure its business year.
"We now have sales occurring in the second half of the year at rates never seen before as consumers have embraced the opportunity to purchase their new car in July.”
Source: www.businessworld.ie
