The Irish motor trade is "low-risk and high-value" when it comes to re-opening for business, according to the industry body that represents Ireland's dealers and importers.
Lends itself to social distancing
The Society of the Irish Motor Industry (SIMI) has said that dealers should be allowed to welcome customers back into their premises because they can be re-opened more safely than other businesses. "From a health and safety perspective, the Industry has proven during the duration of the pandemic that showrooms can operate in a safe environment for their employees and customers. The large size of dealerships, the low average footfall, the ability to do business on a strict appointment-only basis and the option of displaying cars outside lends itself to social distancing and safe retailing. Car sales are very low risk, but offer a high return to the State in terms of employment and Revenue. In this context SIMI members are ready to open showrooms for business safely, but if this is not possible a move to click and collect would help the sector in the interim" said SIMI Director General Brian Cooke.
Registrations of new cars took a rare turn for the positive in February, rising slightly by 6.93 per cent to 13,834 new registrations compared to February last year, when 12,937 new cars were sold. For the year-to-date, new car registrations are down by 10.6 per cent, to 38,986.
Increase in VAT a challenge
"While new car sales were slightly up when compared to February last year, they are down 11 per cent year to date and down 18 per cent on 2019. Strong pre-orders at the end of last year along with the ability to offer a click and deliver service have helped the Industry, as has the reduced VAT rate during the first two months of the year, which has brought some March sales forward. Looking ahead to March, with most year-end pre-orders having been fulfilled, the increased VAT rate and with the absence of car hire, it is anticipated that the month ahead will be a challenging one for the Industry" said Cooke.
Light commercial sales (vans, in normal-person speak) were up significantly on last February, by 53 per cent to 3,315 registrations. In total, van registrations are up by 6.7 per cent for the year to date, which may indicate some resilience in the underlying economy.
Imports of used cars fell again, although perhaps by not as much as one might expect, given the difficulties (both financial and COVID-related) or bringing in cars from overseas. 5,757 used cars were imported, a 5.25 per cent decline compared to February 2020. For the year to date, imports have fallen, but only by a marginal 0.97 per cent, far less than was assumed at the beginning of the year.
Electric registrations up by 142 per cent
Registrations of new electric cars rose significantly - 813 EVs were registered in February, compared to 336 in Feb 2020. That's a gain of 142 per cent. So far, electric car sales are up by 46 per cent year-on-year to 1,791 registrations.
In terms of the best-sellers lists, it's as you were with Toyota the best-selling brand, followed by Hyundai, Volkswagen, Skoda, and Ford. The Hyundai Tucson remains the best-selling car, followed by the Toyota Corolla, Toyota RAV4, Toyota Yaris, and Ford Focus.
Diesel power is still clinging on to a marginal lead over petrol - 36 per cent of buyers went for a car with a diesel engine, compared to 33 per cent for a petrol. Electric cars took a 4.5 per cent market share, with plug-in hybrids on 4.8 per cent, and hybrids on 18.1 per cent.