Slowdown and tax changes blamed for fall in car sales

A FALL of almost 21 per cent in new car sales last month has been attributed to the general economic slowdown and consumer confusion over upcoming tax changes.

New car sales are down 9.3 per cent so far this year, according to the latest figures.

Sales to the end of April were 106,307, down 10,867 on the same period last year.

Monthly sales for April were 13,363, down 3,514 from the same month last year.

A further indication of the general economic downturn is the fall in sales of commercial vehicles, often a bellwether for the economic performance of the construction and retail trade.

Sales in light commercial vehicles have fallen by 19 per cent to 20,165 so far this year, while heavy goods vehicle sales are down 15 per cent to 2,208.

While Alan Nolan, director general of the Society of the Irish Motor Industry, acknowledged that the figures reflected some slowdown in the economy generally, he also blamed a degree of confusion among consumers on impending changes to the vehicle registration tax (VRT) and road tax regimes.

From July 1st, VRT and road tax will be based on a vehicle’s carbon emissions rather than its engine size.

More fuel-efficient cars, particularly diesel models, are likely to see a fall in price, while large, petrol-engined vehicles are likely to rise in price.

Eddie Murphy, chairman of Ford Ireland, said large stocks of used cars in dealerships were also contributing to the fall in new car sales.

Toyota remains the best-selling new car brand in Ireland, with sales of 14,751, representing 13.9 per cent of the market.

Ford takes second place, with 13,229 new cars sold up to the end of April, followed by Volkswagen with 11,804.