CAR sales have grown strongly so far this year, with over 74,000 new cars sold in the first five months of the year, according to the Society of the Irish Motor Industry.

New car sales went up 36 per cent to 74,581 from the same period in 1995. The total for the whole of 1995 was 87,000, itself a 14 year high, up 30 per cent from the year before.

Mr Cyril McHugh, chief executive of the society, said the rise "reflects the pent up demand following years of depressed sales due to the high level of taxation". The most popular marque of car so far this year is Ford with 2,051 new registrations, followed closely by Opel with 1,983 and Toyota at 1,768.

Light commercial vehicles registered a 19 per cent increase over 1995, while 17 per cent more heavy goods vehicles were sold. Ford also topped the league in light goods vehicle sales at 490.

Mr McHugh pointed to the Government's scrappage scheme as well as an increased number of cars being bought for hire as factors behind the jump in sales.

Mr McHugh said that since the scrappage scheme was introduction in July, 1995, revenue exceeded £50 million, despite the £1,000 refund. In 1996, the scheme has brought in an extra £33.5 million. So far this year, 9,683 people have availed of the scheme compared to 5,140 in 1995.

He added that because of the increase in new car sales there are now "exceptional bargains" to be had in good quality used cars.