Mixed outlook on health of car trade

The 6.5% increase in licensing of private cars last month compared with January 2011 indicates a “slow return” of consumer confidence in the motor industry, according to a Cork TD.

Deputy Dara Murphy said that the increase came despite the absence of a scrappage scheme such the one in place last year as a safeguard for employment in the industry.

This shows “some signs of renewed buoyancy in the market”, he said.

Nevertheless, the Society of the Irish Motor Industry (SIMI) has a cautious outlook for the rest of 2012, predicting a fall in sales of around 15% for the full year.