Irish motor sector predicts 20% rise in new car sales in 2016

The Society of the Irish Motor Industry has predicted the car sales sector will grow by 20% next year, with up to 150,000 new vehicles sold and an extra 3,250 jobs created.

SIMI previously confirmed there had been 123,670 new car registrations this year, up to the end of October — 30% more than in the corresponding period of 2014.

Yesterday, the society released its 3rd quarter motor industry review, a report compiled by economist Jim Power in association with DoneDeal.

The review showed:

• There have been 3,700 new jobs created in the motor industry since June 2014, bringing the total to 44,700.
• The Exchequer has collected €1.12bn from new and used car sales since the start of 2015.
• The 152-plates are having a very significant impact on car sales, as registrations in the third quarter were 41.1%, ahead of the same period in 2014.
• Black is the most popular colour of new cars accounting for 19.77% of total sales.
• Light commercial vehicle sales are up 43% and heavy goods vehicles (HGVs) are up 6%, year to date.

Furthermore, the review broke down where the new cars had been sold since the start of the year.

Unsurprisingly Dublin (48,836) had the largest share followed by Cork (14,890).

The biggest percentage increase was in Leitrim (45%).

The review also found the cost of motoring had decreased in general, notwithstanding the 26.7% hike in insurance costs

While the fall was partly attributable to a 3% drop in the price of a new car, what was likely to have been more significant was the 11.8% drop in petrol prices and 16% drop in diesel charges in the year, up to September.

“Consumer confidence is at a nine-year high and credit conditions for motor finance are also improving with the Personal Contact Plan (PCP) model making a significant contribution,” the review said.

Economist Mr Power said: “The recovery in the motor industry that commenced during 2014 has gathered significant momentum in 2015 and it is turning out to be a good year, at least in terms of sales activity.

“The growth in car sales is making a significant contribution to employment, exchequer receipts and regional economic activity.

“New car sales in 2016 look set to grow by at least 20% on 2015, which would mean total sales of at least 150,000 translating into an extra 3,250 jobs in the auto sector; and increased VAT and VRT revenues of 208 million for the Exchequer.”

Meanwhile, the society’s president Mark Boggan said: “From the quarterly report we see every county continues to experience growth in new car sales, ranging from Leitrim with the strongest growth of 44.6% to Wexford with the lowest growth rate of 15.4%. It is evident that the industry continues to make significant regional and local contribution to the overall improvement in the labour market.

“While the growth rates in new car sales around the country is indicating the economic recovery is becoming more broad-based from a geographical perspective, this positioning is uneven outside the main urban areas.”