Registrations of new cars in Ireland in July fell by 5.9 per cent compared to July last year and have fallen by 0.3 per cent for the year to date, having started in January with a 15 per cent rise.
Why have car sales fallen so much?
The most likely culprit is the high inflation we saw last year, which has only just started to recede. That affects people’s disposable income, and it sure as hell affects their car-buying decisions. It hasn’t helped that electric car sales, having been a major driver of new car sales in 2021 and 2022 and the early part of 2023, have tailed off dramatically.
How bad are electric car sales going?
It’s not good. In July, just 3,417 new electric cars were registered (and remember, that’s not all sales - some of those will be demo vehicles, too), a fall of 24.7 per cent compared to last July. For the year to date, new electric car registrations have fallen to 13,885, a 25 per cent decrease compared to the same period last year.
In fact, of the top-ten selling electric models, only three - the Hyundai Kona, the Tesla Model 3, and the BYD Seal - have registered an increase in sales this year. Everyone else in the top ten is down.
What about other sales?
Vans and HGVs - up by 11.7 and 19.5 per cent year to date, although van sales softened in July - are a bright spot for the moment, and that’s good news as van and truck sales are generally indicative of the health of the underlying economy. Imports of used cars - largely from Japan rather than the UK now, and you can see our news piece HERE for more on that - rose by 32.2 per cent in July and are up by 26.4 per cent for the year to date, with a total of 37,199 used imports.
What can be done about flagging sales?
According to Brian Cooke, the Director General of the Society of the Irish Motor Industry, which complied the figures: “The 242-registration plate sales period is, as is always the case in July, an exciting and optimistic period for the Irish Motor Industry. However, July has continued the trend of recent months with a decline in new car sales. Year to date new car registrations are now marginally behind the first seven months of last year. Light commercial vehicle registrations also saw a decline in sales for July, but the activity remains strong, and sales are ahead of last year for both the light and heavy commercial fleets.
“The key headline for July continues to be the drop in Electric Vehicle (EV) registrations, which are down by 25 per cent year to date. EV sales are now back to 2022 levels. Last year saw several EV incentives reduced, including the SEAI Purchase and Home Charger Grants, while Benefit-In-Kind (BIK) for company EVs is schedule to increase significantly in 2025. We are at a critical juncture on the journey to Zero Emission Vehicles, but we need decisive actions in the Budget to arrest this slide and to reignite Ireland's EV momentum. This can be done by extending the BIK incentive at current levels, and increasing the SEAI Grants back to 2022 levels until the EV market recovers. Budget 2025 is a real chance for Government to signal their commitment to fleet electrification and is an opportunity they should grasp.”
David Savage, vice president of Geotab, a vehicle telematics company, told CompleteCar.ie that: “July is now the fifth month in a row where EV sales in Ireland have fallen, highlighting the need to reset Ireland’s EV strategy in Budget 2025 later this year in the hopes of having any chance of meeting the Government’s target of having 945,000 zero-emission vehicles on the roads by 2030. July is traditionally a bumper month for car sales in Ireland, but drivers are clearing voting with their wallets by opting for petrol and diesel vehicles instead, with EV sales lagging behind. We have to take a step back and look at the international picture, where EV sales are continuing to rise in countries like the UK and ask ourselves why Ireland can’t deliver similar growth. For example, 133,000 new electric cars were registered in the UK over the course of the first five months of 2024, representing a year-on-year increase of almost 10 per cent. We need to go beyond a simple restoration of EV grants to their previous levels and explore targeted incentives such as the introduction of a scrappage fee for high polluting petrol and diesel vehicles and bringing in free tolls for electric taxis and light commercial vehicles.”
Who’s top of the sales charts?
Toyota maintained its hold on the top sales spot for brands, followed by Volkswagen, Skoda, Hyundai, and Kia. The Hyundai Tucson is still the top-selling model, followed by the Skoda Octavia, Kia Sportage, Toyota RAV4, and Toyota Yaris Cross.
Zoë Bradley, Head of Marketing and Corporate Affairs at Toyota Ireland, said, “With one in three cars sold in July being hybrid or plug-in hybrid, the SIMI results once again highlight the growing Irish appetite for electrified driving and the shift towards more sustainable motoring. Our recent survey revealed that 73 per cent of 18-to-29-year-olds believe emissions from diesel cars pose a problem on Irish roads. Toyota Ireland's multipath approach across hybrid, plug-in hybrid and battery electric gives a wide choice for drivers to move to electrified motoring and is crucial in moving Ireland away from harmful diesel, significantly reducing CO2 and NOx emissions.
“With more Toyota hybrid and plug-in options offering drivers the best of both worlds—fully electric for short trips and an efficient hybrid powertrain for longer journeys—we are excited to see what the rest of the year brings, as there are plenty of choices for our customers.”
The best-selling electric brand is Volkswagen, followed by Tesla, Hyundai, BYD, and Kia. The Volkswagen ID.4 remains the best-selling electric model, followed by the Tesla Model Y, the Tesla Model 3, the Hyundai Kona, and the Kia EV6. The Hyundai Tucson was the best-selling car in July, and the Volkswagen ID.4 was the best-selling electric car for the month.
Petrol-engined models accounted for 31.95 per cent of sales, with diesel on 22.9 per cent, hybrid on 20.72 per cent, electric on 13.27 per cent, and plug-in hybrid on 9.62 per cent.