Some 89,900 new cars were registered last year, of which 90 per cent fell into the two lowest tax bands. Of all the new cars sold last year, just 4,246 cars face an annual motor tax bill of more than €330.

That can be judged as a rare success story for the previous government, given that Irish buyers opted for lower emission cars. A success story that is in terms of environment; a nightmare scenario in terms of economic policy however.

The emissions-based tax regime introduced in July 2008 has proved to be a great hit with buyers. In line with the favoured lower emissions, diesel is now the favourite fuel of new car buyers here, presenting 71.2 per cent of new cars sold. And all this has added up to a serious hole in the national coffers.

The Government has already confirmed that it will introduce a new tax regime in the budget for 2013, in an effot to recoup lost revenue not only on the back of a drop in new sales from the heady days of the 2006 and 2007, but also in annual motor tax. The current situation where buyers of a new BMW 5-Series, Mercedes E-Class and Audi A6 can avail of tax rates of just €225 a year is unlikely to continue. The problem will be if they try to grab too much from the motorist and kill off new car sales in the process. With predictions of sales for 2012 falling as low as 70,000 that doesn’t bode well for the industry and will likely mean more dealerships will be forced to close.

The figures also show that after several years of Ford and Toyota having control of the top of the sales table, Volkswagen is firmly in the fray for taking top spot in the coming years. Even rivals such as Hyundai and Renault now suggest that VW will be the best-selling brand by 2013. However, neither Ford nor Toyota is going to give up a top table position without a fight.

It’s not just the top three battle that is worth watching. Renault has lost some of its pace in the market, particularly since the end of scrappage, but it’s still a significant player in the market with 9.5 per cent. It will be vying to retain a top five position next year.

Another top five hopeful for 2012 is Hyundai, with a new i40 proving very popular and a new i30 due for launch early next year. It might only have 4.5 per cent this year, but sales are already up 33 per cent and that’s before the saloon version of the i40 hits our roads.

Then there is Skoda, which has been climbing the charts for the last two years and, although falling back in 2011, has some new models in the pipeline that will lure new customers into showrooms in the next two years. Against these three rising stars are the likes of Nissan and Opel, eager to show that they can retain their top tier positions.

So what do the sales figures show? Well we like grey diesel hatchbacks and value is more important than either style or performance. And with just three Porsches and one Maserati registered in 2011, sports cars are once more a rare sight on our roads.

Source: SIMI