New car sales rose in August were up 14.3 per cent on the same month last year, with the total registrations so far this year at 138,538.

Sales in August were 7,313, up from 6,400 for the same month last year. Total new car sales are currently 19.23 per cent up on last year.

According to Alan Nolan, director general of the Society of the Irish Motor Industry, it has been a "noticeably more difficult market since June". However, he said the market was still on course to deliver close to 150,000 new car sales by the end of year.

Estimating that sales to date have already generated €1.2 billion in tax income for the Exchequer from vehicle registration tax and VAT receipts, Mr Nolan said it was “crucial that the provisions in the forthcoming budget for 2017 support rather than undermine the State’s tax revenues and employment across the sector”.

“The potential for post-Brexit sterling exchange rates to drain business away from the Irish domestic economy was highlighted by the increase of 76 per cent in the number of imported used cars in July, so clearly the last thing we need at this stage is any further damaging tax increase in the forthcoming budget.”

Hyundai remains the best-selling brand with 15,071 registrations, ahead of Toyota with 14,737. Volkswagen is in third place with 14,379, followed by Ford with 13,947 and Nissan with 11,376.

Best-selling car

This year’s best-selling car remains the Hyundai Tucson with 7,229 registrations, well ahead of the VW Golf in second place with 4,682.

At the premium end of the market, Audi is out in front with 5,575 sales, compared to BMW with 5,025 and Mercedes-Benz on 3,530. The best-selling premium car remains the BMW 5 Series, with 1,440 registrations to date in 2016.

Only three car brands with Irish dealer outlets recorded a fall in sales so far this year: Citroen, Subaru and Porsche. The German sports car brand has seen its sales slide from 73 this time last year to 63 in 2016.

Amid suggestions that diesel fuel prices may be increased in the upcoming budget, it remains the favoured engine choice so far this year, powering 97,062 new cars sold so far this year compared to just 38,465 petrol cars.

Electric cars

In terms of alternative power options, just 361 electric cars have been registered this year, a fall of 17 per cent on last year. Hybrid petrol electric sales, however, have increased, up from 1,465 in 2015 to 2,650 so far this year.

Mr Nolan said any piece-meal increases on diesel fuel or motor tax, at a time when rising insurance costs were already hitting motorist, “would be damaging and extremely ill-conceived given that a new EU emissions regime is being rolled-out from next year which will require a major review of our current environmental taxation”.