The number of new cars being bought has fallen by one-third on last year's figures, highlighting the slowdown in consumer spending.
According to the latest figures released by the Central Statistics Office, 15,689 new private cars were licensed in June 2001 compared to 23,874 in June 2000, a drop of more than 34 per cent.
Sales for the first six months of 2001 were 27 per cent lower than the same period last year.
The marketing manager for Ford Ireland, Mr Dennis Mac Sweeney, said this drop was expected.
"This level of decrease was forecast way back last year," he said. "2000 brought about an unusual spike in the figures. Everybody wanted a 00 registration and this coincided with very low interest rates and an enormous level of consumer confidence," he added.
New car sales between January and June of this year reached 115,086 compared to 158,497 in 2000. This drop is in sharp contrast to the rise experienced between the 1999 and 2000 period, when the number increased by 47,573.
"This decrease is not necessarily a negative indicator, as the figures are still some of the highest. There is still a substantial market out there," said Mr Mac Sweeney.
Ford was the most popular car, with 2,073 bought in June. This was followed by Volkswagen (1,733), Toyota (1,482), Nissan (1,465), Opel (1,282) and Fiat (1,228).