New car sales down 6.5% partly due to fall in car hire

New car sales are down 6.5 per cent for the first six months of the year. Provisional figures from the Society of the Irish Motor Industry (SIMI) show 11,194 new cars were sold in June compared to 11,714 for the same month last year. Overall passenger car sales for the first six months were 111,947, compared to 119,687 for the same period last year.

Despite the fall in sales in June and for the first six months, Cyril McHugh, chief executive of the SIMI, said the underlining market remains quite strong. He attributes over 53 per cent of the downturn to a fall in short-term car hire. "This is directly related to a reduction in the number of tourists visiting Ireland this year. This trend continued in June when the shortfall in car-hire was in excess of 700 compared to June 2002."

Ford remained the top selling marque for the sixth month in a row, with a 12.8 per cent market share, up from 12.4 per cent last month, while Toyota retained second place with 11.2 per cent.

In third place VW maintained a double digit market share with 10.01 per cent, with Nissan taking up the chase with 9.8 per cent.

Other mainstream marques to record a move in the market were Fiat and Alfa Romeo, which has gone from a market share in June 2002 of 6.95 per cent, to a current share of 3.95 per cent. Its sister marque, Alfa Romeo has also recorded a drop in market share, from 0.9 per cent to 0.56 per cent. It sold 628 cars to June 2003, compared to 1,075 for the same period last year.

According to Joe Gantly of Fiat Auto Ireland, both marques are at the lowest point of their product cycles in almost the entire ranges. However, he's confident the coming months, and the replacements on the way will return the marques to their previous positions. "We're waiting new models such as the new Punto and the new supermini, the Gingo. In terms of Alfa we have the revamped 156 on the way and new Sprint."

But it's not all doom and gloom. Proving that some people are immune to economic movement, Mercedes sales increased from 2,768 for the first six months in 2002, to 3,913 to the end of June this year, an increase in market share from 2.3 per cent to 3.5 per cent.

According to Matt Fagan, chief executive of the Mercedes-Benz division of Motor Distributors Ltd the increase was driven by the introduction of the new E-Class. He dismissed suggestions that the luxury end was cushioned from any market downturn: "Historically the upper end of the market is the last to be effected, but it's certainly not immune."