Sales up 23% as recovery continues
New car sales are up by 23% in the first half of the year, already selling more than in all of 2013, while the Exchequer has also benefited by over 629 million in taxes from car sales this year, and although motor insurance is higher, both petrol and diesel prices are lower than the same period in 2013.
Economist Jim Power (left), who compiled the review based on the SIMI and DoneDeal, said that the report shows the motor industry and the Irish economy is continuing on its road to recovery.
“While consumer confidence took a hit in May, it is still increasing. This looks set to be the most positive year for the Irish economy since 2007 with the motor industry being a key driver in this, contributing 3.4% of the total tax revenues collected in the first six months of
2014.” he commented.
New car sales have increased month by month in each county around the country.
Leitrim has seen the biggest increase in new car sales in 2014, up 51% for the first half of 2014. Dublin has shown the lowest increase at 14%, but it’s Dublin that has the highest percentage of new car sales, with 38% of all new cars being sold in the capital.
According to Alan Nolan, director general of SIMI, the review shows that what the motor industry is doing at the moment is working.
“What we need now is a period of stability. We need the conditions to continue to improve at a sustainable rate. We need the Government to play its part and keep these conditions stable over the next 12-18 months to help the industry recover, to create jobs and ensure that we continue a healthy contribution to the Exchequer.”
His hopes in this regard might just be a little
optimistic, given the traditionally lukewarm treatment the industry gets from the powers that be, but one can always hope.
Nevertheless the review’s figures for the first half of 2014 showed that 31% of the new cars licensed were imports.
The review also sees
positive figures in the light and heavy commercial
vehicle sales. Light commercial vehicle sales are up 36% from the first half of 2013, while heavy commercial vehicle sales are up 45%.
The statistics from DoneDeal included in the review highlighted that there was a 4% increase in the total motor ads on the site compared with the first 6 months of 2013. The value of all motor goods advertised was 6% higher than in 2013, while the value of cars advertised was 4.4% than the same period last year.
The review also revealed that the most popular car body type in 2014 is hatchback (35%), diesel is the most popular fuel type (73%), with the most
popular colour is silver (21.5%).
As part of the Second Quarter Review, SIMI also undertook a survey of its members on issues within the industry.
SIMI members said that 69% of new car sales were directed from the internet. On safety, they said that over 67% of cars presented for repair now were worse than pre-recession (2007). Some 88% of vehicles presented for repair have dangerous tyres while 42% have a dangerous suspension.
Not all good news, then.
