SIMI is the official voice of the Motor Industry, we represent over 1200 member companies who come from a variety of sectors within the Industry. Over 40,000 people are employed in over 400 towns and villages around Ireland. Our Industry contributed 6.3 Billion in motor related taxation to the Exchequer last year.
Budget 2023 will play an important role in the step towards decarbonisation. We are still in the very early stages of the electric vehicle project, and we have a long way to go to meet the challenging targets in the Government’s Climate Action Plan. In this context it is essential that Government supports both consumers and businesses by extending EV incentives at current levels in the forthcoming Budget. By doing this we can help secure a greater supply of Electric Vehicles for the Irish market, increase new EV sales in the short term and create an active used EV market, which will make an electric vehicle affordable to a wider constituency of motorists.
In addition, if we want to speed up the removal of the oldest highest emitting vehicles from the national fleet, Government should refrain from any further taxation increases. This would encourage activity in both the new and used car markets, allowing motorists to trade up to a cleaner new or newer more fuel-efficient car.
-SEAI Grant, 0% Benefit-In-Kind (BIK) and VRT Relief.
- Passenger car VRT, remain same
- No changes to LCV VRT, which could prove destabilising and counterproductive.
-Introduce new business incentives to purchase Battery Electric Vehicles (BEVs).
-Examine new incentives to renew the fleet, scrappage/swappage, low cost loans.
-Charging infrastructure stays ahead of demand
-Consumer have confidence in the EV project
A reduction in VRT to stimulate growth in new car sales thus providing a cleaner, greener car fleet which will result in reduced emissions and cleaner air quality. This will protect jobs throughout the country and helps us all to achieve our climate change objectives.
Our national car fleet has gone from one the youngest in Europe to one of the oldest, in 2008 the average age of a car was 6 years old. The average overall age is 9 years. Average age of a diesel car is 8.6 years. Average age of a petrol car is 10.8 years
With 2.7 million vehicles currently in the national fleet, there will continue to be a large number of Internal Combustion Engine (ICE) vehicles in the Irish Fleet, even beyond the next 10 years, all of which will require servicing for many years to come. For many motorists it will take time to transition from internal combustion engines as the cost to change even with incentives is not a viable proposition. The Motor Industry is committed to Zero emissions. it is important that we reach these goals in a measured and realistic way.
In order to make the transition to alternative vehicle technology consumers must have confidence in proposition. If we want to make progress then we must have certainty for consumers where incentives and supports are provided. Funding from Government needs to be provided to re-introduce the supports for company vehicles and infrastructural changes to support the move to low emission vehicles.
SIMI believes that car ownership remains a requirement for successful living for many people in Ireland, particularly outside of large metropolitan areas. While not directly involved, SIMI supports the Government to consider improved mobility management.
• Supply issue Geo-political uncertainty, Covid-19, Brexit
• Fragile consumer confidence
• Rising Inflation/Interest rates
• Outlook uncertain