Car sales show June increase

New car sales were up 31 per cent last month compared to June last year, with the market up 14 per cent in total so far this …

New car sales were up 31 per cent last month compared to June last year, with the market up 14 per cent in total so far this year.

A total of 77,134 new cars have been sold in the first six months of the year, with the Government’s scrappage scheme contributing to over 11,700 sales.

According to figures from the Society of the Irish Motor Industry (SIMI), a total of 29,371 new cars were purchased over the 18-months of the scheme, which ended last Thursday. Under the scheme motorists who legally scrapped a car ten years or older could avail of a discount – of up to €1,500 last year and €1,250 this year – on the Vehicle Registration Tax (VRT) due on the purchase of a new car with an emissions rating of under 141g/km.

According to the society, the scheme generated €100 million in VAT and VRT after the Government discounts are taken into account.

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Renault benefitted the most from the scrappage scheme, with sales of 5,091 new cars, followed by Toyota with 4,310. The best-selling new car for scrappage scheme buyers was the Ford Fiesta, followed by Renault’s Megane.

While claiming the scheme has been a success in generating new sales and protecting jobs, Suzanne Sheridan of the SIMI said the overall new car sales figures for the first six months show most new cars bought this year were not part of the scheme.

In terms of overall new car sales so far this year, diesel versions remain a firm favourite among buyers, representing 71 per cent of sales, while 91 per cent of the new cars sold have been in the two lowest tax bands in terms of emissions. This is a marked increase on last year where 77 per cent of sales fell into the two lowest tax bands. It reflects the importance new car buyers are placing on emissions and motor tax.

However, the interest in cleaner cars is not reflected in sales of electric or hybrid cars. Just 36 new electric cars have been registered in the first six months, while sales of hybrid models are down 29 per cent to 410, and sales of flexi-fuel (or biofuel) variants have fallen by 39 per cent to 1,304.

Michael McAleer

Michael McAleer

Michael McAleer is Motoring Editor, Innovation Editor and an Assistant Business Editor at The Irish Times