The Society of the Irish Motor Industry says new car sales so far this year have already exceeded the total for 2009.
Just over 57,000 new cars were bought last year, the lowest number in many years.
However, the industry says it is already exceeded that figure in the first five months of 2010.
It is now thought that up to 80,000 new cars will be sold this year.
Director General of the Society of the Irish Motor Industry, Alan Nolan, says the scrappage scheme has helped to kick start things.
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