New car sales fell by 31% last month

THERE WAS a 31 per cent drop in new car sales in August compared with the same month last year, figures published yesterday show…

THERE WAS a 31 per cent drop in new car sales in August compared with the same month last year, figures published yesterday show.

The figures released by the Central Statistics Office show that 3,653 new private cars were licensed in August 2011, compared with 5,310 in August 2010. Of these 3,653 new cars, 74.9 per cent were diesel-powered and 23.3 per cent were petrol, a reverse of the market split pre-2008.

Figures from the CSO differ slightly from those of the Society of the Irish Motor Industry in that they refer to vehicles taxed for road use rather than just registrations. Figures from the society indicated a drop of 35 per cent in August. Both sets of figures can be explained as a so-called “scrappage hangover” following the ending of the scrappage scheme in June. The scheme offered tax relief on vehicle registration tax on the sale of a new car – up to €1,500 last year and €1,250 this year before it ended – when a car 10 years or older was scrapped.