Outlook for motor industry for 2011 is positive

The Society for the Irish Motor Industry (SIMI) last week released new car sales for January, which at 21,078 are 29% up on last year.

The Society for the Irish Motor Industry (SIMI) last week released new car sales for January, which at 21,078 are 29% up on last year.

Speaking at their January press briefing at the Merrion Hotel this morning, SIMI’s Director General, Alan Nolan says that the increase in January car sales is a strong indication that the Government Scrappage Scheme is incentivising people to buy new cars.

“January is the busiest month for car sales and sets a precedent for the rest of the year. At 29% up, the performance in January was even better than anticipated, driven by Scrappage, strong offers from all brands and the availability of finance in the dealerships.  Although we don’t yet have official figures, feedback from members confirms that interest in Scrappage has been very strong so far this year and we expect that demand will continue to be high until the end of June when the scheme ends.  It really is a great time for consumers to take advantage of these incredible offers while they last.”

Commenting on the outlook for the year Alan Nolan said, “This is a great start but It is very early days to draw any firm conclusions, we have to remember that January last year was impacted by snow and Scrappage continued right to year end of 2010. That said, there is great confidence in the sector and levels are likely to be similar to last year.  We will have a clearer picture at the end of Q1.”

The figures: 1,078 new cars bought in January

29% increase on last year

Represents €30 million increase in revenue

C0₂ emissions fall again – 6% reduction on last year

Outlook for 2011 – a continuation of the progress toward recovery