NEW car sales in the Republic have risen by almost a quarter in the last six months, although the recovery may be short-lived.
Car sales are seen as one of the strongest indicators of how the economy is performing.
In the second quarter of this year alone, the sales contributed €978 million to the Irish exchequer.
New car registrations rose by 23 per cent in the first half of this year, compared with 2015 figures, according to the latest quarterly report by the Society of the Irish Motor Industry (Simi) and DoneDeal.
Around 122,800 new cars have been sold this year, with the total expected to exceed 150,000 by the end of 2016.
Van registrations are also up by 25 per cent, while HGV sales have risen by 30 per cent.
However, the author of the report has predicted that car sales will not be so buoyant next year.
Economist Jim Power said the UK's decision to leave the European Union would have a knock-on effect on the market.
Mr Power said: "Despite the still-positive economic outlook, growth in car sales could be low or maybe even flat in 2017.
"This slowdown in growth reflects a market approaching, but still lower, than its natural state, after a prolonged period of catch up, but one that is now shrouded in Brexit uncertainty."
The report highlighted a decrease in fuel prices, with diesel alone seeing a 12.4 per cent drop.
However, insurance costs have soared by 38.6 per cent.
