Growth in new car sales stalls in October on Brexit concerns

New car sales advanced by 18 per cent in the 10 months to October, but the sale of new cars actually fell in that month on the back of Brexit uncertainty and slowing retail activity. According to figures from the Society of the Irish Motor Industry (Simi), total new car registrations are up by 21,913 or 18 per cent so far in 2016, up to 123,520. However, new registrations fell in October compared with October 2015, down by 12 per cent, or 316 units, to 2,559.

Hyundai was the best-selling car so far this year, with its Tucson the most popular vehicle sold, followed by Volkswagen,Toyota, Ford and Nissan. Car sales are expected to continue to slow down coming into the last few months of the year.

“In the final quarter of the year, we do expect to see a slowdown in new vehicle registrations, with much smaller numbers each month compared to the peak selling months; indeed the industry is already moving its focus to the 2017 sales period, as can be seen and heard in current advertising campaigns,” Alan Nolan, director general the Society of the Irish Motor Industry, said.

Nonetheless, Mr Nolan said it was clear that there has been a slowdown in 162 registrations, compared with sales of 161 cars, which finished up 23 per cent on the first six months of 2015.

“Whether this has been influenced by the Brexit situation or just a slowing of retail activity in the Irish economy after a sustained period of growth, is not yet clear but this is something that the industry will be continuing to watch closely,” Mr Nolan said.

With regards to light commercial vehicle (LCV) registrations, sales are up by 19 per cent, or 4,373 units, in the first 10 months of the year, while registrations in October (1,181), fell by 23 units, or 2 per cent, compared to the same month in 2015. Heavy goods vehicle (HGV) registrations also fell during October, down by 16 per cent, while year-to-date registrations (2,774) are up 711 units, or 34 per cent.

The Simi figures usually differ from those issued by the Central Statistics Office, which measures the number of cars taxed for the first time, while the Simi figures are based on new registrations issued by the vehicle registration office.