The Irish motor industry is seeking an extension of the current car scrappage scheme and changes to the numberplate system.
With the scrappage scheme due to end this year, Society of the Irish Motor Industry (Simi) president Eddie Murphy said it had a positive impact on car sales since it was introduced.
“The improvement in new car sales this year has had a very positive impact in terms of consumer sentiment and it would be very damaging if this were to fall back next year," he said. "An extension of [the scrappage scheme] into the peak buying season in the early part of next year would be hugely beneficial.”
Last November, Simi predicted new car sales for this year would top 70,000, with 10,000 due to scrappage scheme sales. “Today we’re already in excess of 75,000 and predict that we’ll sell closer to 85,000 this year,” said Mr Murphy.
By the end of July 74,111 new cars were registered, of which 10,472 were through the scrappage scheme.
Mr Murphy said that new car sales up to the end of July had generated €470 million in VAT and VRT, up €70 million on the same period last year. There was also a 12 per cent drop in the average CO2 emissions of a new car sold compared to 2009.
The industry fears the end of the scrappage scheme could herald a slump in new car sales next year. In European markets such as Italy, Spain and France the ending of similar schemes contributed to double-digit drops in new car sales.
Simi is also seeking changes to the current registration system. It attributes the seasonality in new car sales - with 54 per cent taking place in the first quarter and 70 per cent in the first six months of any year - to prominence of the year of registration on number plates. It is calling for a discussion on the current system with the Garda, local authorities and motorists on improvements to the current format.
Alongside a wider review of the current numberplate system, Simi is also proposing a new scheme be introduced next year, allowing buyers of used cars to re-register their vehicle in their home county.
Simi director general Alan Nolan said a fee of up to €250 could be charged for the change, which local authorities could then reinvest back into the local road network.
He said such a move could generate up to €20 million in extra Government revenue, based on 10 per cent of the 750,000 annual used car buyers opting to change the registration to their own county.
Mr Nolan said the new scheme would simply require the National Vehicle and Driver File to be updated in the same way that the re-registration of imported cars is handled. He said the previous registration would remain on the vehicle’s file, so future buyers can still do a background check.