According to figures from the Society of the Irish Motor Industry, sales of new cars rose 5.4% to 25,506 in February, compared to February 2006.
Sales for the first two months of the year were up 7% to 72,853 on the same period in 2006.
Light commercial vehicle sales for the first two months of 2007 rose 19% to 15,662, and heavy vehicle sales were unchanged.
SIMI CEO, Cyril McHugh said the organisation has lodged their proposals to alter the Vehicle Registration Tax (VRT) system to take account of CO2 emissions.
He said the constructive and practical proposal is designed to encourage car buyers to make responsible decisions.
'We strongly believe that this is an opportunity to provide a carrot to encourage good decision making, rather than seeking to use a stick, as is too often the case in relation to state dealing with motorists', he said.
