The Society of the Irish Motor Industry (SIMI) has called on the Irish Government to keep the current incentives for buying a new electric car going in the upcoming Budget. Currently, depending on the price of the vehicle, buyers can get a €3,500 grant from the SEAI and rebate on Vehicle Registration Tax (VRT) of up to €5,000, although that rebate is tapered off for prices above €40,000.
Increased funding for charging
"As a country we can't control the international political and economic situation, however we can control our own local taxation and incentive regime. If we get this right, we can create a platform to give consumers and businesses more options to make better environmental choices" said SIMI's secretary general Brian Cooke. "For this to happen, the Industry and its customers need stability and certainty. In this context, SIMI is calling on Government in the forthcoming Budget to extend current EV incentives and not to increase VRT. For consumers this means continuation of the SEAI grants and VRT relief on EVs, while for businesses an extension of the Benefit-in-Kind reliefs for three more years. In addition, there should be increased funding to support the national charging infrastructure. By doing this, we will see an increase in both the new car market and in EV sales, with the potential to create an active used EV market over the next couple of years. These measures would support Government in a number of ways; increase revenue from new car sales, protect employment and reduce emissions from the national fleet."
Sales dipped in August
Cooke's calls come as new car sales dipped slightly in August. August registrations were down by 0.3 per cent compared to the same month last year, although for the year as a whole, new car registrations have risen by 18.3 per cent. "This year's new car market has two notable features; the return to pre-pandemic sales levels and the ever increasing share of electric vehicles. EVs registered for the first eight months of the year have broken the 20,000 barrier. This should only be viewed as a start. We have yet to return to new car sales levels that will reduce the age of the national fleet. We need to see an even greater levels of EV sales, both new and used, if we want to get close to the Government's Climate Action ambitions" said Cooke.
Sales of light commercial vehicles - vans, which are often seen as a reliable indicator of the underlying economy - were up by 5.7 per cent in August, and are up by 32 per cent in the year to date.
Imports of used cars, primarily from the UK, have seen a 4 per cent (4,578) decrease in August 2023, when compared to August 2022 (4,769). Year to date imports are up 2.8 per cent (34,012) on 2022 (33,084).
Electric sales slowing slightly
Sales of new electric cars continue to rise, although their acceleration does seem to have tapered off somewhat, possibly as a result of the July reduction in the SEAI grant. 1,776 new EVs were registered in August, compared to 1,484 in the same month last year - an increase of 19.7 per cent. Overall, electric car registrations have climbed by 59 per cent to 20,218 - but that is a slower rate of growth than was seen in 2022, in spite of improvements in the supply of new vehicles from car factories.
Petrol still remains the fuel of choice for most buyers - representing 30.6 per cent of all sales, with diesel continuing to fall to 22.3 per cent. Hybrids stand on 18.8 per cent, with electric cars on 17.9 per cent, and plug-in hybrids at eight per cent. Electric Vehicles, plug-in hybrids and hybrids now see their combined market share (for the year to date) at 45 per cent.
So far this year, Toyota remains the top-selling brand, followed by Volkswagen, Hyundai, Skoda, and Kia. The best selling car for the year so far is - you've guessed it - the Hyundai Tucson, followed by the Kia Sportage, the Toyota Corolla, the Toyota Yaris Cross, and the Volkswagen ID.4.
The best-selling electric car brands so far this year have been Volkswagen, Tesla, Hyundai, Kia, and MG. The best-selling electric car of the year so far is the VW ID.4, followed by the Tesla Model Y, the Hyundai Ioniq 5, the Skoda Enyaq, and the MG4.
The best-sellers in August were the Hyundai Tucson, which took the overall top spot, and the Tesla Model 3, which was August's best-selling electric car.