Iceland’s car business rises 30% in H1

Iceland’s car business increased over 30 percent in first half year than the same period in 2013, according to a report published by Car Field Union Tuesday.
A total of 7,120 cars have been registered in the first half of 2014, 1,646 more than first six months in 2013, the report posted on the union’s website said.
Since only about 7,300 cars registered throughout 2013, it could be assumed that the number at the end of August will equal to the whole in 2013.
Car business increased sharply, including more than 4,000 rental cars registered. About 3,000 cars were sold to individuals or companies this year, 15 percent higher than the previous year, said Jon Trausti Olafsson, chairman of Car Field Union.
Jon said, stable exchange rate is one of the factors. And it is better to drive a new car than the 10-15 years old cars. The average age of cars in Iceland is 12 years old.
The average oil consumption in 2014 is 5.4 liters per hundred km, which is much less than almost nine liters per hundred km in 2002.
Another factor is that the excise taxes on safety equipment and other spare parts are lower than before.
It is also important to keep on supporting the introducing of electric cars while the technology is still in development, said Jon.