SIMI calls for VRT reduction as new car sales fall almost a third

The top-selling car brands are Volkswagen, Toyota, Hyundai, Skoda and Ford.

New car sales are down almost 30% this year compared to 2019.

There were 21,213 vehicles sold last month, which is nearly 3,500 fewer than July of last year.

The top-selling car brands are Volkswagen, Toyota, Hyundai, Skoda and Ford.

The Society of the Irish Motor Industry (SIMI) said there needs to be a reduction in VRT to allow the car market to return to normal.

Brian Cooke, SIMI Director General, said: “While the July registration period did bring much-needed activity back to showrooms, new car sales continue to disappoint, with another monthly fall. This is despite the fact that many quarter 2 sales had been pushed back into the 202 registration plate. 

"Covid-19 on the back of Brexit and an already falling new car market since 2016, now sees new car sales back to recession levels, down 30% year to date. Looking further into the numbers, new car sales will fall for the fourth consecutive year, with a staggering 44% reduction over the last 4 years. 

"This slowdown is materially undermining the renewal of the National car fleet, which is not only bad for profitability and regional employment, but is also hampering Ireland’s efforts to reduce transport emissions. 

"With the Budget only two months away, we need to see a reduction in VRT, to allow the car market return to normal sustainable levels, which will reduce both the age of the fleet and emissions."