New car sales fall 14% in first 3 months of year

New car sales fell by 14% during the first three months of the year compared to the corresponding period last year.

According to figures released by the Society of the Irish Motor Industry (SIMI), there were 39,511 new cars sold in the first three months of this year, compared to 45,840 last year — a decrease of 6,329.

Sales last month were down 10%, when there were 1,356 fewer cars sold.

Because of the latest fall in new car sales, the SIMI has now dropped its earlier projection of 75,000 new cars for the year to 70,000.

SIMI’s director general, Alan Nolan, said the first quarter of the year was always a crucial period for the motor industry as it was a good indicator of how sales would perform over the rest of the year.

“Half of all new car sales are usually done in the first three months of the year. Based on current figures, we’re predicting a new car market of 70,000 this year, slightly down on our originally expectations.”

Mr Nolan said the industry was having to drive sales with strong offers to consumers, but there was also a negative side to the situation.

“Although the exchequer benefits in the short-term from such industry-driven sales, in the longer term, vehicle registration tax and Vat income is likely to be negatively impacted in due course.”

Mr Nolan said the industry was now under pressure to sell cars ordered for the year based on original sale expectations.

However, a bad experience this year was likely to lead to a more conservative view of next years’s market and this would impact on tax revenues in the year ahead.

Mr Nolan said he doubted the 131 number plate had any impact on sales, and that it was just a case that people were not spending money.

He said uncertainty surrounding the earning power among public sector workers was also having a negative effect on sales.

“At the moment, though, all of this is good news for the consumer with very strong offers available on new cars and, with a shortage of good- quality, used cars in the marketplace, trade-ins are in huge demand.”

According to motor- check.ie, the Volkswagen Golf was the best selling model during the first three months.

Motorcheck.ie figures show there were 2,083 new Golfs registered in the first quarter of this year — 43% of Volkswagen’s total sales.

Shane Teskey, the co- founder and managing director of motorcheck.ie, said the Volkswagen Golf was ahead of the Nissan Qashqai and Ford Focus.

He said the only brands in the top ten to show an increase in volumes registered were Hyundai (up 25%), Audi (up 13%), and Kia (up 5%).

“Popular brands Renault, Toyota, and Ford suffered the biggest losses with a drop of 47%, 29%, and 23% respectively,” he said.

“The industry will now set its sights firmly on Jul 1 when it is hoped that the 132 number plate will stimulate a second coming for new car sales.”