No January boost for car dealers

MOTOR LOBBY BLAMES BREXIT FEARS AS ‘191’ CAR SALES COME UP SHORT

THE motor industry in Kerry has suffered a difficult start to the year with new car sales falling well below expectations according to the latest figures from the Society of the Irish Motor Industry (SIMI).

The number of new cars registered in Kerry in January fell by almost 16 per cent compared to 2017 – falling from 857 in January 2018 to 723 this year.

Similar drops have been seen across the country.

By comparison, in Cork new registrations fell from 5,054 in 2018 to 4,399 this year while in Dublin new registrations fell from 12,731 to 11,439 last month.

The decline of Sterling, and Brexit, have led to uncertainty, key factors for the decline according to SIMI who said the uncertainty in the market will likely continue until at least March 29 when the UK is due to formally leave the EU.

Brian Cooke, director general designate of the SIMI, said the figures were disappointing but not necessarily a shock.

“New vehicle registrations in January are clearly disappointing but not surprising. With Brexit fast approaching adding to business uncertainty, the weakness of Sterling is continuing to drive down used car values which is increasing the cost to change,” said Mr Cooke.

The SIMI report highlights Ireland’s generally strong economic performance but points out that, despite this, the motor industry faces an uncertain future, as represented by the sharp decline in new vehicle sales in January.

SIMI said this reflects the significant impact of Brexit on the market.

While new car sales were down, there was some good news in the second hand market. Used car sales reached the highest level on record last year with 100,755 sales accounting for 44.5 per cent of the total car market.

Used car sales did fall last month, but only slightly, dipping by 0.6 per cent.