Scrappage scheme withdrawal hits sales

The VAT increase and the withdrawal of the car scrappage scheme is responsible the fall in new car sales, according The Society of the Motor Industry Ireland.

Society director Tom Cullen said that the figures were along the lines of what they expected would happen once scheme was withdrawn.

Mr Cullen said: “The figures are down which is a reflection on the VAT increase and consumer sentiment. The scrappage scheme propped up the new car sales figures last year. 17,000 cars were bought on scrappage last year. When scrappage figures are excluded, this is what we would expect to see.”

He said that the good news was that the sales of second hand cars were buoyant.

The number of car sales in February were down following the traditional increase in January as people rush to get a new license plate.

The CSO said that 10,993 new cars were licensed in February. The figure was almost half the number that were registered in January, when 21,313 new cars were registered.

Year on year, the number of cars registered were down 18.4% on 2011. This decline came on the back of good sales figures for January when the motor industry recorded a 6.5% annual increase.

The CSO figures show that for the first two months of 2012, new car sales are down 5.9% from the same period last year to 25,500.

Many consumers buying cars are opting for diesel. Nearly 75% of new private cars registered were diesel. Only nine electric vehicles were registered, while another 73 hybrids also took to Irish roads.

In terms of marques, Toyota was the most popular brand of car registered. There were 1,568 new Toyotas licensed, followed by Volkswagen (1,463); Ford (1,094); and Hyundai (805).