Rise in new car sales

New car sales increased 4.5% last year, it was revealed today.

Just over 186,500 were bought in 2007 compared with 178,484 in 2006, marking the second highest ever level of sales according to the Society of the Irish Motor Industry (SIMI).

SIMI Director General Designate Alan Nolan said the release of Special Savings Incentive Accounts (SSIA) early in the year boosted business.

“2007 has turned out to be the second best year ever after 2000 (230,804), reflecting the fact that while economic growth has slowed somewhat, it is still outperforming other EU countries,” Mr Nolan said.

“The number of people at work has remained very strong, which is a key driver for new car sales and this augers well for 2008, which promises to be another excellent year for the motor industry,” he said.

According to the figures Toyota was the most popular new car in 2007, with 28,023 registered.

The number of light commercial vehicles also jumped from 40,979 in 2006 to 44,056 – a hike of 7%.

In contrast the number of heavy goods vehicles (HGV) was down 7% and bus and coach registrations by 16%.

Environmental watchdog Friends of the Earth said more must be done to discourage people from using their cars.

“It isn’t car ownership that is the problem, it is our dependency on them,” spokesman Oisin Coughlan said.

“We use cars way more than the European average and indeed, I understand, more than the US average.”

Mr Coughlan said improved public transport, the introduction of congestion charges and per kilometre tolling on the M50 must be rolled out to reverse Ireland’s car dependent culture.

SIMI said it believes the new VRT system reflecting CO2 emission levels, due to come into effect in July, will help boost sales further in 2008.