Car showrooms operating at the same business levels as 10 years ago

The car sales industry said the outlook for 2021 is not optimistic. Picture: Laurel Chor/Bloomberg

Car sales in August were down 4.2% when compared to August last year new figures show.

However, the registrations so far in 2020 are down 28.6%, or 78,920 vehicles, on the same period last year due to the impact of Covid-19.

Brian Cooke, Director General of the Society of the Irish Motor Industry (SIMI) said August represents another disappointing month for new car sales and said sales have been down every month this year when compared to 2019.

"This has led a year to date reduction of 29% in new cars sales, and a 43% reduction over the last four years. The industry is operating at the same business levels as 10 years ago when the sector shed close to 15,000 jobs," he said.

In August light commercials vehicles sales were down 11% while heavy goods vehicles are up 20.13%. 

The figures also show that used car imports have seen a decrease of 16.1% on August 2019. Year to date, car imports are down 45.1% (39,672) on 2019 (72,214).

Diesel engines held the largest market share of new vehicle registrations at 43.45% followed by petrol 37.58%, hybrid 12.06%, electric 3.75% and plug-in Hybrid 2.7%

"The outlook for 2021 is not optimistic," Mr Cooke said.

"With the negative impact of both Covid and Brexit, new car sales will continue at recession levels. The motor industry in Ireland supports employment in local communities throughout the country and to protect these jobs it needs a fair taxation environment in which to operate."

SIMI said that ahead of Budget 2021, now is the time for a significant reduction in Vehicle Registration Tax (VRT). 

"This would enable the car market return to normal sustainable levels that would not only save jobs but increase overall tax take and help renew the Irish car fleet, reducing both the age of the fleet and emissions from transport.”