NEW CAR sales are down 15.5 per cent so far this year at 137,666, with sales in May down nearly 51 per cent at 10,191 on the same month last year.
Much of this fall-off is down to changes in Vehicle Registration Tax (VRT) due to take effect from July 1st. Most industry analysts believe the market will recover considerably once the new tax changes are introduced, particularly as several popular models will fall in price – particularly diesel models – and most buyers in these categories are waiting for the changes before buying. However, most suggest the car market will end the year down between 7 and 10 per cent.
Toyota remains the best-selling brand in the State up until May 31st, with a 14.3 per cent share, followed by Ford with 12.5 per cent. Volkswagen hold third place with 11 per cent.
According to SIMI director general, Alan Nolan: “While the general slowdown in the economy and in consumer spending has impacted on the new car registrations, the scale of the drop in May is undoubtedly due in large measure to the forthcoming VRT and Road Tax changes.”
Of more note to the general economic climate, light Commercial vehicle registrations for the first five months are down 21.7 per cent, while sales of new heavy goods vehicles (HGVs) are down 19.28 per cent compared to last year.