Cyprus car registrations soar after tax cut

Motor vehicle registrations soared in November, rising by 68% compared with the previous month, as the cuts in excise duties amounting to 40% led to a spending spree.

Car show-rooms took the unusual step of opening their doors all weekend after the announcement, and the figures indicate that they did so for good reason.

Saloon cars were the biggest gainers, rising by 119% compared with October, from 1,481 to 3,240, while light goods vehicles still fell, from 348 to 304.

Compared with November 2005, total registrations were up 6.2% to 4,090, or 44,566 in the first 11 months.

Motor registrations have been very volatile in the past few years. After a tax-related spending spree in late 2004, registrations fell for most of 2005 and had only just recovered in May-June, before rumours of another impending tax cut put a halt to sales growth again until the tax-cut was announced.