CAR SALES were down 10.12 per cent last month compared to the same period last year, according to figures released yesterday.
Figures from the Society of the Irish Motor Industry (Simi) show that car sales for the month of February dipped 10.12 per cent, compared to the same month in 2007. Last month 24,119 new cars were registered, compared to 26,835 in February 2007.
Overall, new car figures are down 1.16 per cent since January 1st compared with the same period last year, with 71,569 cars registered, some 841 fewer than last year. Light commercial vehicle registrations were down by almost the same amount, down 10.22 per cent on February 2007.
The figures, which followed a strong January where sales were up by almost 4 per cent compared to January 2007, would indicate that a mixture of economic slowdown and customer uncertainty over the new Vehicle Registration Tax and road tax laws, which come into effect on July 1st, have led to consumer uncertainty.
Commenting on the figures, Simi director-general designate Alan Nolan said: "The fall in registrations reflects the degree of consumer confusion that had been obvious in showrooms across the industry regarding the road tax changes. However, the Minister for the Environment has moved very quickly on this issue and removed all confusion with his announcement last week.
"With car buyers now being able to gain the benefit of the new road tax system, we have already seen some pick-up in sales in the last few days of the month."
However, despite this optimism, many car industry executives have already revised their predictions on new car sales for 2007, with some predicting a forecast of 165,000 new car sales for 2008. This would be a 20,000 unit drop, or 11 per cent, on 2007 passenger car sales figures.
Perhaps more telling from an economic perspective is the drop in light commercial sales in February. As a bellwether to the state of the overall economy, commercial sales, which are closely related to the building trade, would give an indication of an overall slowdown.