Car sales continue to fall as new vehicles licensed declines 34%

NEW car sales continued to plummet last month with the number of new private vehicles licensed down more than 34% on an annual basis.

Figures from the Central Statistics Office show that the overall number of private cars registered in the first six months of 2009 has fallen by 63% compared with the same period last year.

They show that just 42,365 new cars were licensed between January and June this year compared with 114,569 cars licensed during the first half of 2008.

On a monthly basis, a total of 4,833 new private cars were licensed in June compared with 7,369 in the corresponding month last year. Almost 4,000 used imported cars were also registered last month.

On a more positive note, the latest CSO figures show that the rate of falling car sales has begun to slow as the decline is less than in other months so far in 2009.

The 34.4% reduction in June compares with the 60% annual drop in May and a 68% fall in April.

The market for goods vehicles has suffered even more with the number of new vans and trucks licensed last month down by 64%. However, sales of new goods vehicle sector is down by over 74% so far in 2009.

The CSO figures corroborate similar sales figures released by the Society of the Irish Motor Industry earlier this month.

The SIMI said that while the fall in new car sales is not as big as previous months, the results had to be seen in the context of the lower level of sales experienced in June 2008 linked to the introduction of the new system of car taxation 12 months ago.

SIMI director general Alan Nolan said overall car sales for the first half of 2009 were down by almost two-thirds, claiming the new figures came as “little surprise” and were in line with their own forecasts.

The SIMI has also expressed concern about the lack of availability of finance for motorists wanting to buy new cars which it warned was placing further pressure on the motor industry.

Several leading car dealerships announced closures in the past few months including Tom Hogan Motors with the loss of 190 jobs through its showrooms in Galway, Clare and Tipperary.

Last week, the Cork-based Drive Motor Group announced that it was being placed in voluntary liquidation as a result of a 70% drop in sales.