Motor Industry calls on Government for no tax increases on new cars

Official statistics released today by the Society of the Irish Motor Industry (SIMI) show that the total new car registrations for the month of August are down 13.3% (5,131) when compared with August 2018 (5,921). New car registrations year to date are down 7.9% (110,572) on the same period last year (120,003).

New Light Commercial Vehicle (LCV) registrations are up 35.1% (1,880) on August 2018 (1,392), however registrations year to date are down -2.2% (21,906). While New Heavy Commercial Vehicles (HGV) decreased 20.7% (157) in comparison to August 2018 (198) and year to date are up 3.1% (2,207)

Imported Used Cars for August saw an increase of 10.2% (9,708) on the same month last year (8,812) and year to date imports are up 5% (72,211) ahead of 2018 (68,784).

New electric vehicle registrations continue to grow month on month with 172 vehicles registered for the month of August an increase of 4.2% on August 2018 (165) while a total of 2,860 EV cars were registered so far this year.

Brian Cooke, SIMI Director General said: “Despite the strong economic growth, the new car market continues to contract this year, with registrations for the month of August following this trend. In this business context and with the increasing likelihood of a hard Brexit, SIMI is calling on the Minister for Finance not to increase taxes on new cars in Budget 2020.

“It is important that our new car market is as strong as possible from both an environmental and employment view point. Instead the current Brexit and taxation mix only encourages people to hold on to their older higher emitting cars for longer.

“New car sales need to increase if Ireland is to see the real benefit of improvements in emissions from new technologies, and taxation systems should support not hinder this.”