Tax confusion blamed for car sales dip

The motor industry has blamed confusion over new car tax regulations for a 20 per cent dip in sales of new cars in April.

The motor industry has blamed confusion over new car tax regulations for a 20 per cent dip in sales of new cars in April.

A total of 13,363 new cars were sold in April, down 20.82 per cent compared to April 2007, according to the Society of the Irish Motor Industry (Simi).

New cars sales are down by 9.3 per cent this year. Sales to the end of April were 106,307, down 10,867 on the same period last year.

“Although there is obviously some slowdown in the economy generally, there is no doubt that the registration figures have been affected by the degree of confusion out there among consumers with regard to the Vehicle Registration Tax (VRT) and Road Tax changes,” said Alan Nolan, director general of the Society of the Society of the Irish Motor Industry (SIMI).

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A further indication of the economic downturn is the fall in sales of light commercial vehicles. Sales in that sector have fallen by 19 per cent to 20,165 so far this year, while heavy goods vehicle sales are down 15 per cent to 2,208.

In the car market, Toyota remains the best selling new car brand in Ireland, with sales of 14,751, representing 13.9 per cent of the market. Ford takes second place with 13,229 new cars sold up to the end of April, followed by Volkswagen with 11,804.