Figures released by Simi, the Society of the Irish Motor Industry, show a decline of 18 per cent in new car sales in May. For the year to date, sales are down by 8.7 per cent on last year.
Suzanne Sheridan of Simi said long-established dealerships had been forced to close recently due to a lack of business activity.
“With consumer sentiment falling month on month and precautionary saving increasing, the outlook for the next six months is very worrying, despite the real value and reduction in new car prices in recent years.”
Simi predicts 75,000 new car sales this year. This compares with nearly 90,000 last year and 151,000 in 2008.
“A ‘normal’ year for the motor industry is in the region of 130,000 new cars, so this 55,000 shortfall this year is not sustainable for the industry in the medium term.”