Sales slump as downturn bites

New car sales fell significantly last month, amid signs that the economic downturn was finally taking hold in the industry. Car registration figures for February were down by 18.8 per cent on the same month last year and 5.5 per cent for the year so far. Sales for the first two months were 52,454, with 19,624 cars sold last month, down 4,490 on February 2002.

The fall took many by surprise after January sales recorded an increase of 6.6 per cent, albeit on the basis of a significant number of pre-booked sales.

The figures have caused concern in the industry as the first quarter normally represents the vast bulk of sales and has led to calls for a reduction in what many describe as the punitive taxes on motorists in Ireland.

However, others warn against overstating the decline, pointing to abnormal sales for February last year as buyers rushed to avoid the one per cent rise in VAT introduced in March 2002. Eddie Murphy, chairman of Ford Ireland, said: "'While showroom traffic was disappointing at a time when both supply and customer offers were plentiful, we shouldn't over state this dampening of demand."

In terms of marques, Ford remain the best-selling car firm, selling 2,076 units last month, slightly ahead of rivals Nissan, with 2,051, and VW with 2,031.

Figures for the first two months show Ford with 12.76 per cent of the car market, ahead of Nissan, Volkswagen and Toyota.

In the commercial vehicles sector, registrations were down almost 17 per cent on the corresponding month last year.