The Exchequer earned €1.12 billion between VRT and VAT on car sales during the first nine months of the year, according to a new report.

The SIMI/DoneDeal third quarter Motor Industry Review also stated that new car sales were at 121,098 for the year to the end of September, a 30% increase on the same period in 2014.

In the first half of the year alone, the Exchequer received €761m from new and used car sales, representing annual growth of 21%.

The 152 plates have also impacted on car sales this year, as registrations in the third quarter were 41.1% ahead of the same period in 2014.

Meanwhile, Light Commercial Vehicles (LCV) are up 43% and Heavy Goods Vehicles (HGV) are also up 6% year to date. 

The report was compiled by economist Jim Power and provides key industry information on 2015 up to the end of September and comments on the prospects for 2016. 

It highlighted that the cost of motoring in general has decreased with the price of a new car down on average of 3%, despite the fact that motor insurance costs have increased by 26.7% in the year to September.

Petrol prices declined by 11.8% according to the report, while diesel prices also declined by 16% in the year to September.

It added that consumer confidence is at a nine-year high and credit conditions for motor finance are also improving with the PCP model making a significant contribution.

Looking ahead to the 2016 outlook for the motor industry, economist and author of the report Jim Power said: “New car sales in 2016 look set to grow by at least 20% on 2015, which would translate into total sales of at least 150,000 translating into an extra 3,250 jobs in the auto sector; and increased VAT and VRT revenues of €208m for the Exchequer”.

The report said the motor industry created 3,700 new jobs in the sector year-on-year to the end of June.