Sales of cars and motorcycles stalled in the third quarter of 2016, bringing a year of strong growth in the sector to an abrupt end.

Overall profits grew by just one per cent, largely as a result of a 9% fall in profits by importers of new cars, CBS figures show. Sales of cars for business use were particularly hard hit as tax incentives were scrapped.

The previous four quarters all saw profits rise by at least 7% as the economy recovered, peaking at 23.6% in the last quarter of 2015.

Profits from motorcycle sales bucked the trend, rising by 8%, while service garages also recorded a 6% increase. Sales of car parts and company cars also grew by more modest amounts.