Sales, or at least registrations (and they’re not necessarily the same thing) of new cars in Ireland slipped a little in April, falling by 3.6 per cent compared to the same month last year. It means that overall sales for the year to date, while still up on 2023’s number, now stand at a relatively static 6.0 per cent - a matter of merely 5,000 extra individual cars.
Electric car sales tumbling
It’s not helping that electric car sales continue to falter, despite recent price cuts by the likes of Tesla and Volkswagen. Some 1,091 new electric cars were registered in April, which was 41.4 per cent less than the 1,863 registrations in April 2023. So far this year 9,028 new electric cars have been registered, which is a 19.1 per cent decrease compared to the same period in 2023 when 11,160 electric cars were registered.
Supply no longer an issue
Commenting on the figures, Brian Cooke, the director-general of the Society of the Irish Motor Industry (SIMI), said: “April new car registrations saw a decrease of 3.6 per cent when compared to the same month last year. Despite the softening in demand for new cars in recent weeks, year-to-date new car sales remain 6.0 per cent ahead of 2023. Sales of light and heavy commercial vehicles continued to grow both in April and year to date. The electric vehicle segment experienced another month of decline in registrations, a trend which is being replicated across most EU markets. With the supply of new EVs no longer an issue, and with an increasing number of brands and models present in the EV segment, the drop in EV sales is demand driven. In Ireland private consumers have been the key drivers of the EV market, and these buyers need greater reassurances to be convinced to make the change. This means rapid investment by the government in a reliable, convenient and affordable electric charging infrastructure, while at the same time extending current incentives such as the purchase grant. For businesses and their employees, extension of the Benefit-In Kind (BIK) relief and thresholds at current levels beyond 2024 will create greater confidence that an EV is the right choice for their companies.”
Compelling subsidies
Looking at the electric car sales figures for April, Geotab vice president for Europe, Middle East and Africa, David Savage said: “The 41.4 per cent fall in EV sales in April makes for dismal reading and highlights that the Irish government’s zero-emission vehicles strategy requires an urgent reboot, with April representing the fifth month in the last eight months to have recorded a year-on-year decline in sales. The most recent European Automobile Manufacturers’ Association (ACEA) data also showed that Ireland is underperforming against its EU27 peers, recording the largest year-on-year decline in March across the region.
“Today’s sales data shows Ireland remains on a downward trajectory, with a 19.1 per cent fall for the first four months of the year compared to 2023, and the industry will now be looking nervously to July to see if there is any hope of recovery for EV sales in 2024. Price and the charging network are the two main factors for the decline. The European Court of Auditors (ECA) recently highlighted that EVs are proving to be too expensive for consumers, with subsidies responsible for increased sales in recent years. The government’s decision to cut subsidies last year looks more foolish with each passing month, particularly because of its own advice from the Parliamentary Budget Office in a report published in 2022 noting the fall in EV sales in Denmark when financial supports were withdrawn. Unless compelling subsidies are brought back, the negative sentiment brewing threatens to undermine the market.”
As noted, however, sales of both vans (Light Commercial Vehicles, technically) were buoyant, increasing by 3.0 per cent in April, and are up by 29 per cent for the year to date. Most economic experts agree that improvements in van sales are a good sign for the wider economy.
Imports continue to rise
Imports of used cars are also up, rising by 35.6 per cent in April, and have risen by 26.9 per cent so far this year, with more than 20,000 used cars imported, mostly from the UK. That may indicate that the UK’s scheme to allow vehicle exporters to claim back a portion of the VAT cost of a vehicle might be helping Irish buyers get access to better value in the used market.
Toyota maintained its position at the top of the new-car sales chart in Ireland, followed by Skoda, Volkswagen, Hyundai and Kia. The Hyundai Tucson continues to prove immovable at the top of the individual model sales charts, followed by the Skoda Octavia, Kia Sportage, Toyota RAV4 and Toyota Yaris Cross.
Amid the tumble in electric car sales, Volkswagen is still the best-selling EV brand for the year so far, followed by Hyundai, Tesla, BYD and Kia. The best-selling electric car for 2024 thus far is the Volkswagen ID.4, followed by the Hyundai Kona, Tesla Model 3, Skoda Enyaq and MG4.
April’s best-selling model was the Hyundai Tucson, while the best-selling electric car for the month was the VW ID.4.