Nissan has called on the Government to ban the importation of any used car first registered in the UK before 2014.
The company said this will ensure that all cars imported from the UK and re-registered in Ireland in the future will meet the current emissions standard set down by the EU.
James McCarthy, CEO of Nissan Ireland, said that 100,755 polluting cars are imported from the UK and put onto Irish roads each year, which results in an "enormous loss" in tax revenue.
Nissan said the proposed measure would significantly address the problem of rising carbon emissions while it would also generate €400m a year in new tax revenue.
"1,937 polluting cars are being put onto Irish roads each week, on average. That is not helping Ireland to reduce carbon emissions and the tax take from a used car import is €6,000 less than from a new car sale," James McCarthy stated.
He said the measure would prevent the displacement of over 66,000 new car sales in 2019 at a time when new car sales and used car imports are moving closer to par.
The tax take from each new car sale is €8,500 compared to the €2,500 generated by each used car import, he also pointed out.
"This ban needs to be included among any package of new measures aimed at changing consumer behaviour to reduce carbon emissions and it is also essential if the Government is to ensure that the objectives of its electomobility strategy are not wholly undermined," Mr McCarthy said.
"The Government can not solve the carbon emissions problem when 100 polluting cars are being put onto Irish roads for every zero emissions electric vehicle sold.
"This defeats the purpose of introducing EV incentives and it makes a mockery of Government policy to ban the sale of diesel, petrol and hybrid cars by 2030," he added.