The motor industry expects car sales to top 100,000 this year - for the first time since the financial crash.

The Society of the Irish Motor Industry (SIMI) says strong growth in the sector last year has carried over into January, with sales last month up 31% year on year.

It says that if its forecasts are met it could lead to the creation of 2,000 new jobs and a significant boost to the economy.

SIMI says January is a particularly important month for car sales - as buyers look to trade up for the new registration plate.

It says sales last month came in at just under 30,000 - that is up 31% on 2014. With that in mind, it is predicting a strong year for the industry.

But some challenges remain for the sector. More than 35% of cars on our roads are over 10 years old - posing problems for safety and the environment.

However the industry expects the average age will be brought down by the rebound in new cars.

SIMI says if its targets are met, the economy will feel the benefit of over €181m in taxes to the Exchequer.

And the director-general Alan Nolan believes a significant jobs boost will also follow.