Steady figures despite emerging ‘Brexit factor’

A RECENT report from The Society of the Irish Motor Industry (SIMI) expects a slowdown in car sales for the final quarter of 2016, while sales figures, generally, for Kerry and Cork have enjoyed a relatively positive year to date. All in all, figures for Cork and Kerry remain in a heathy position facing into the final quarter, 2016.

For example, car sales for the first nine months of 2016 in Cork were greater than the entirety of 2015 with sales increasing across all areas. Meanwhile, in Kerry, car sales for October 2016 were down by just one unit on October figures for 2015.

“In the final quarter of the year we do expect to see a slow-down 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,” said SIMI Director General, Alan Nolan.

Nationally, the figure for new car registrations in October 2016 was 2,243 which decreased by 316 units compared to October, 2015. The total in new car registrations, year-to-date, is 145,433 which is up 21,913 units on the same period last year. However, the SIMI predict the industry is still on course to deliver close to 150,000 new car sales by the end of this year. In broader terms, figures up to September 2016 reveal that car sales generated €1.2 billion for the Exchequer in both VRT and VAT receipts, while the industry currently employs over 42,000 people nationwide.

Reacting the recent budget, SIMI President, Alan Greene, described it as “careful and conservative” but welcomed the 5-year extension in grant supports for electric vehicle VRT and SEAI. Mr Greene also welcomed the 2-year extension for Hybrid and Plug-in Hybrid vehicles.

Added to the industry this year is the likely fallout/impact arising from the Brexit decision and leading experts in the motor industry say they will be focusing on the last quarter slowdown, and subsequent trade, for any ‘Brexit side effects’.

However, there’s also a growing consensus that Brexit may actually be providing value for car buyers here. Latest SIMI figures show that 6,767 cars were imported from the UK in October - an 87 per cent jump compared to the same period in 2015. Moreover, September increases in Vehicle Registration Tax (VRT) was €17.9m, which is more than double the €8.7m spent for September 2015.

While this naturally benefits the UK exchequer, a weakening sterling, due to post-Brexit dynamics, means buyers travelling to Northern Ireland or across the Irish Sea could be in a position to avail of further savings in the future until such time as a more settled UK economic platform is established, post-Brexit.