New car sales down 12 per cent year on year
Car sales increase slightly in November however sales for the year down are down 12 per cent as the motor industry awaits possible tax increases and registration plate changes in the Budget
Figures released by the Society of the Irish Motor Industry (SIMI) show a slight increase in new car sales of 105 cars (13 per cent) in November (883) compared to 778 in November last year. Sales for the year are down by 12 per cent.
Alan Nolan, Director General SIMI: “New car sales are down 10,000 on last year and given that each new car generates €7,700 in tax for the Government, this represents a reduction of €80 million in the tax take from the Motor Industry. All indications are that we are facing a VRT increase in the Budget but clearly increased sales will deliver far more in tax revenues to the State than increasing the tax rates. Decreasing car sales also impact on employment with overall jobs in the Motor Industry reducing from 39,400 last year to 35,700 by the middle of this year.”
He added: “With new car sales projections for next year at 75,000, the level of employment in the Industry is set to fall further next year. At least for consumers any increase in VRT is likely to have a knock-on effect on the value of the second hand being traded-in and with quality used cars in very short supply, they are still likely to do well in the current market environment.”
“Although this Budget will be bringing some bad news, the Industry is still hopeful that a second registration period will be introduced in July of next year. We have been highlighting the problem of seasonality in the Motor Industry for many years; 80 per cent of new car sales occurring in the first half of the year means that many businesses in the Motor Industry have to let staff go mid year due to lack of activity. A second registration period should help to spread business more evenly through the year. Obviously we have to await the Minister’s Budget Statement on Wednesday before any of this is certain.”
