New car sales have increased by 6 per cent to 89,296 in the six months to the end of July.

Figures issued by the Society of the Irish Motor Industry yesterday show that sales were still running very strongly ahead in June, up 8 per cent on the previous month.

SIMI chief executive, Mr Cyril McHugh, said that while new car sales are continually on the increase, the Government still needs to address the needs of motorists. He said the motor industry had contributed £1.9 billion in Government revenue, urging it to reduce some of the more onerous aspects of taxation on motorist such as vehicle registration tax.