New car sales slump in 2009

New car sales fell almost two-thirds last year as the recession devastated the motor industry, it was revealed today.

New car sales fell almost two-thirds last year as the recession devastated the motor industry, it was revealed today.

Dealers sold some 57,460 vehicles in 2009 - down  94,147 or 62.1 per cent on 2008’s figures.

The Society of the Irish Motor Industry (Simi) said last year was one of the toughest ever with 70 dealerships closing and 11,000 jobs lost since January 2008.

Despite the plummeting figures, December saw a sales bump for the industry with a 61.7 per cent jump in new registrations on December 2008. But Simi claimed the rise reflected the extremely low level of sales in December 2008 and did not mark a booming month.

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The most popular car maker in 2009 was Ford, with 8,121 new sales, followed by Toyota at 7,603. Simi’s figures also show a shift towards more eco-friendly cars, with low-emission vehicles accounting for more than half of all sales, up from 27 per cent in 2008.

The number of imported used cars last month were down 26.4 per cent on the previous year, from 2,725 to 2006, and down 20.4 per cent for the entire year. Light Commercial Vehicle registrations were up 78.9 per cent last year, while HGVs were up 18 per cent.

Alan Nolan, Simi director general, said the scrappage scheme, announced in the Budget, provided a glimmer of hope for the industry.

“While it is too early at this stage to see the effect scrappage will have on 2010 new car registrations, dealers across the country are reporting increased footfall in their showrooms and very strong interest in the scheme,” Mr Nolan said.

“History has shown us that a scrappage scheme not only boosts trade within the motor industry but also has a positive knock-on effect on the wider economy. This is the stimulus needed to breathe fresh air back into the motor industry.”

The scrappage scheme for cars at least 10 years old came into effect on January 1st, giving customers €1,500 Vehicle Registration Tax relief for new low-emission cars. Simi hopes the scheme will give the industry a boost and push sales to the 70,000 mark in 2010.

PA