SIMI wary despite good start to 2012

Despite a 1.5% rise in new car sales last month, the Society of the Irish Motor Industry (SIMI) remains cautious, predicting a fall in sales of around 15% for the full year.

Director General of SIMI, Alan Nolan, said that January had been a “strong start”, with 21,313 new cars sold, 314 more than a year previously.

He said January was crucial for the motor industry, as half of all new car sales will occur during the first quarter of the year.

“However, speaking to garages on a daily basis, it’s clear that footfall is down on last January, and of course, some 16,000 cars were sold on scrappage last year which we don’t have this year,” he added.

Mr Nolan said that there had also been a good start to 2012 for the commercial vehicle sector with HGV sales up 64% and LCV sales increased by 17% on last year’s figures.

And while concerned that a Government review of VRT and road tax planned for the year would result in higher taxes, Mr Nolan welcomed that SIMI will be able to make submissions on the review.

“We would hope that the current review will result in a balanced approach that focuses on the critical issue of maintaining jobs,” he said.