First indications show shifts in buying patterns following introduction of new VRT regime at the beginning of the month, writes Paddy Comyn.
SALES OF new cars were strong for the first few days of the new VRT scheme. With the changeover from the old engine-sized-based system to one based solely on the CO2 emissions of the car, there has already been a shift towards lower-emission cars.
Some 8,000 new vehicles were registered over the first nine days of the month, compared to just over 4,000 for the same period in 2007. There have already been more cars registered in the first eight days of July than in the whole month of June.
This burst in sales has also had the affect of arresting the overall decline in sales for the year to date.
At the end of June, the year-to-date registrations were down 19 per cent for the year, compared to the first six months of 2007. This flourish of activity at the start of July has meant that the market is down 16 per cent compared to the same period last year.
Early indications would show that buyers have reacted to the VRT and road tax changes by purchasing lower emission cars. Average CO2 emissions for the 8,000 cars registered in the first eight days of July stand at 141g/km, compared to an average of 162g/km for cars registered in the same period of 2007.
This means that the average car purchased in July is a Band C car, compared to an average of Band D at the same point last year.
According to the Society of the Irish Motor Industry (SIMI), if this trend were to continue for the whole of next year, at last year's registration level, it would produce a saving of almost 72,000 tons of CO2 per year, and would reduce the CO2 output from the car population by 1.3 per cent.
Commenting on the figures, SIMI director general Alan Nolan said: "We have long held the view that significant progress on CO2 emissions from transport can be made when the State, the motor industry and the buying public are focused and energised by a coherent practical and incentive-driven policy. In many ways progress to meet our targets will be through consistent long-term policies that build consumer knowledge and tap into the goodwill that obviously exists, to take responsible decisions regarding buying and using vehicles."
Despite the fact that the new CO2 emission laws were not coming into effect until July 1st, figures for the first six months of the year would indicate that Irish consumers were already starting to make more environmentally-friendly choices. The average CO2 output for cars registered from January to June 2008 was 161g/km, compared to 164g/km for the same period in 2007. The conclusion, according to Nolan, is that we are seeing the first signs that Ireland can make real progress towards reducing our CO2 output in line with our commitments. "The motor industry has enthusiastically grasped the challenge and has, since the start of the year, worked with the Department of the Environment to carry the environmental message to consumers," says Nolan.
"Good fiscal policies, as part of a focused long-term plan, together with clear consistent consumer information, and the early delivery of improved vehicle technology can genuinely deliver significant results."
There was a flourish of activity of some high-emission models in June, with 77 Range Rovers registered, compared to 74 in the same month in 2007. Thirty-three Audi Q7s were registered in June, 32 BMW X6s, 59 BMW X5s, and 32 Jaguar XFs. A total of 227 Mercedes-Benz E-Class models were registered in June, compared to 95 in June 2007, with many Mercedes-Benz dealers pre-registering examples to enable the passing on of savings on road tax on VRT on particular models.
This flourish of E-Class activity meant that the model was the ninth best-selling model in June. It would appear to be a similar situation over at Suzuki, with 153 Grand Vitara models registered in June, compared to 111 in the same month last year. It was the 10th best-selling model in June.
The Toyota Corolla remains Ireland's top-selling model, with 5,987 units registered in the first six months of the year, just ahead of the Ford Focus with 5,903 units.
Both share 4.8 per cent of the market share. Lying in third place is the Volkswagen Golf with 5,618 registrations, ahead of the Ford Mondeo with 5,526 units and the Toyota Avensis in fifth with 4,521 units.