New car registrations down 17.8% in January

Despite new regulations and fees due to Brexit, used car imports are up 3.1%

The latest figures from the Society of the Irish Motor Industry (SIMI) show new car registrations fell to 25,191 this January, down from 30,650 in January 2020. Picture: Larry Cummins

New cars registrations were down 17.8% in January, making it the fifth consecutive year in which registrations have seen a decline in the first month of the year.

The latest figures from the Society of the Irish Motor Industry (SIMI) show new car registrations fell to 25,191 this January, down from 30,650 in January 2020.

Light commercial vehicles (LCV) sales experienced the greatest decline, down 10.9% to 5,033 from 5,647 last year.

Heavy goods vehicles (HGV) registrations are also down, with just 340 registrations this January compared to 356 in the same month last year.

However, despite the impact of more complex regulations and extra fees due to Brexit, used car imports saw a 3.1% increase in January, up from 6,622 in 2020 to 6,824 in January 2021.

Since January 1, imported vehicles from Britain have been subject to new procedures and fees, including a customs duty of 10% on vehicles that originate from a third country such as the USA or Japan and VAT at 21%.

New electric car registrations also increased with 980 registered in January 2021, compared to 891 January 2020.

Commenting on the new vehicle registrations figures Tom Cullen SIMI Deputy Director-General said this is the fifth consecutive January that new car sales have fallen.

“Although, this year’s registrations must be seen in the context of the pandemic and associated restrictions.” 

“Strong pre-orders coming into the New Year and the ability of the Industry to provide both online shopping and a click and deliver service, has mitigated somewhat against the full impact of the pandemic in January.” 

While there has been a fall in new car sales, Mr Cullen said it is positive that electric vehicles are ahead of last January, and with more models and supply coming on stream as the year progresses, it is anticipated that this growth will continue.

The Irish government has set a target to have one million electric vehicles on the road by 2030 in order to meet its emissions targets, with the transport sector currently accounting for 20% of the nation’s emissions according to the CIE.