Used car imports to blame for sales dip

Cheaper UK diesel motors hit Irish showrooms

Imports of ‘dirty’ diesel cars to rise Glut will not last indefinitely

CAR retailers have sold up to 50,000 fewer cars in the past year thanks to a ‘glut’ of second-hand diesel vehicles being imported from the UK.

Registration figures have revealed that sales of new cars in Ireland have dropped almost 20% in the past 12 months.

The Society of the Irish Motor Industry (SIMI), which released the figures claim they show a loss of €300million to Revenue. SIMI said that British traders are selling more cars in the Irish market because of the preBrexit weakness in sterling.

Each used car import raises just €2,500 in taxes compared to approximately €8,500 for each new vehicle sold – a difference of €6,000.

It is estimated this loss will rise to €400million in 2019, as sterling is expected to weaken further as the Brexit date of March 29 approaches.

There were 3,201 new cars sold last month, a drop of 696 when compared to a year ago when 3,897 new cars rolled off the forecourts – a fall of 18%.

Brexit is being blamed for driving down the value of sterling which makes buying a car in the UK cheaper for Irish buyers, who are spending in euro.

SIMI director general Alan Nolan said: ‘The negative impact of Brexit is continuing to drive new car registrations ever lower while increasing the volume of used imports.’

He also cautioned against penalising motorists who drive diesel cars, as the industry moves towards cleaner vehicles.

He said: ‘The other key issue... is the need to avoid unnecessarily increasing diesel taxation, whether through vehicle registration tax, road tax or fuel excise duties.

‘Diesel is also the fuel of business, and increasing diesel tax will increase the cost of doing business in Ireland which will also be challenged by the fallout from Brexit.

‘Such policies should not be implemented without detailed examination of the potential for damaging, unplanned consequences.’

Nissan said the number of imports of ‘dirty’ diesel cars from Britain will increase as the continued uncertainty over Brexit drives sterling weaker.

One car industry source said: ‘If it goes to parity it’ll be Armageddon for us.’

The industry expects the number of used car imports to rise to 120,000 in 2019.

Britain currently has a glut of diesel cars as new emission standards will make them more expensive to run.

The new World Harmonised Light Vehicle Test Procedure (WLTP) standard is replacing the New European Driving Cycle (NEDC) in Britain and other countries. It will give a more accurate reading of the total polluting effect of diesel cars – leading to a hike in diesel motor tax.

Sales of new diesel cars have fallen by around a third in the UK over the last year.

According to a list compiled by Autocar website, there have been at least 16 different diesel models scrapped in 2018, while owners of second-hand diesels are finding it profitable to sell them in Ireland, its nearest eurozone neighbour.

The glut will not last indefinitely, as car manufacturers rush to get out of diesel.

Fiat has said it will drop the Chrysler by 2022 and Volvo said that it would not be introducing new diesel cars after the V60.

Subaru, Suzuki and Porsche have all dropped the sale of diesel cars.