The Society of the Irish Motor Industry confirmed a slight increase in new car sales of 105 cars (13%) in November (883) compared to 778 in November last year. Sales for the year are down by 12%.
“New car sales are down 10,000 on last year,” said Alan Nolan, Director Gneral SIMI. “Given that each new car generates €7,700 in tax for the Government, this represents a reduction of €80 million in the tax take from the industry. All indications are that we are facing a VRT increase in the Budget, but clearly increased sales will deliver far more in tax revenues than increasing the tax rates.”
Decreasing car sales also impact on employment. Overall jobs in the industry fell from 39,400 last year to 35,700 by the middle of this year. With new car projections for next year at 75,000, the level of employment is set to fall further.