Nearly 32,000 fewer new cars were registered in the first seven months of this year compared to the same period in 2019.
Figures from the Central Statistics Office show more than 64,500 cars were licensed up to July compared to 96,380 last year.
There were 15,329 cars were registered in July alone - down 18.2% on the 2019 figure.
"The impact of the Covid-19 crisis on the number of vehicles licensed continued to be felt in the month of July 2020," CSO statistician Olive Loughnane outlined.
"In the first seven months of this year, the number of new cars licensed was 31,867 lower than in the same period of 2019, a drop of 33.1%."
The figures from the CSO show the continued growth in the number of electric and hybrid vehicles licensed in Ireland, Ms Loughnane added.
"Despite the drop of more than 33.1% in the overall number of new cars licensed from January to July 2020, the number of new hybrid cars licensed grew by 5.0% from 9,413 to 9,883," she said.
"There were 2,360 new electric cars licensed in the first seven months of 2020, a fall of 95 vehicles when compared with the same period in 2019."
However, a report commissioned by the Irish Car Carbon Reduction Alliance (ICCRA) found the current level of tax on new cars is hindering motorists from switching to newer greener models.
According to the report by economist, Colm McCarthy, the current level of vehicle registration tax (VRT) is not only reducing sales of new cars, but is having a detrimental impact on the used market by inhibiting the availability of two- and three-year-old models.
Under its climate action plan, the Government proposes to have 1m electric vehicles on Irish roads by 2030