JULY FAILED to offer much respite for car dealers, with new car sales down 15.4 per cent on the year to date. A total of 140,442 new cars were sold up to July 31st, compared to 166,031 for the same period last year.
While the monthly sales were up by 3,236 cars compared to the same month last year, there remains a drop of 25,334 new car sales for the first seven months compared to last year. Many industry figures are suggesting that only an additional 12,000-15,000 new cars will be sold in the remaining months.
That would still see sales top 2004 figures, but low consumer confidence and tighter lending criteria is causing concern for sales in the medium term.
Only five brands recorded sales growth this year: Citroën, Jaguar, Kia, Mitsubishi and Volvo. Their growth has been between 60 and 288 new cars, while the five largest selling car brands all recorded falls in sales this year of between 1,114 and 4,958 new cars.
Dealers blame a mix of high used-car stock levels and low margins on new cars as the key reasons why their businesses are coming under pressure.
At the premium end of the market, profit margins are said to be as low as one per cent.
"The registration figures represent a reduction from an exceptional performance last year, which should be seen in context," said Alan Nolan, director general of the Society of the Irish Motor Industry (SIMI).
"The total of new cars to the end of July this year is the same level as the total new cars sold in the whole of 2003, which was also a good year. As we have previously stated, the Budget changes have clearly resulted in great value in the new car market, but have also delivered incredibly good value for buyers of used cars. This provides a very positive base for the industry in looking forward to 2009."
Light commercial vehicle registrations for the first seven months are down 26.57 per cent at 26,358 on the same period last year, while heavy vehicle registrations (HGVs) are down 25.27 per cent at 3,070.