SALES OF new cars in the first five months of 2010 are up 41 per cent on the same period last year, according to new figures published by the Society of the Irish Motor Industry (Simi).

For the first five months of 2010, 57,898 new cars were sold, 438 more than the total number of vehicles purchased in 2009.

During the first five months of last year, 40,933 new cars were sold.

Simi attributed the jump in sales to the scrappage scheme, which was introduced in the December budget.

Simi director general Alan Nolan said that while the organisation had expected the scrappage scheme to have a positive impact on sales of cars, it did not expect to be hitting the 57,000 mark so early in the year.

“At the beginning of the year, we predicted 70,000 new car sales for 2010. Now, we are looking at considerably more,” he said.

“Our proposals last year estimated that around 10,000 scrappage-scheme cars would be sold, but we also predicted that one of the real benefits of scrappage would be to kick-start the demand for new cars,” he added.

The scheme has resulted in at least 5,000 new car sales, an additional €60 million in tax and a saving of 20,000 tonnes of CO2 emissions, according to Simi.

The scheme entails a €1,500 reduction of vehicle registration tax (VRT) on the purchase of a new low-emissions car when an applicable used car is traded in.

While it only applies to the purchase of new cars with emissions of less than 140g/km, versions of many mainstream family cars and premium models also qualify.