New car sales, or at least registrations, fell again in August, the sixth consecutive month of decline, according to new figures released by the Society of the Irish Motor Industry (SIMI).
New registrations down by 8.4 per cent
The numbers show that registrations fell in August by 8.4 per cent compared to the same month last year, with 7,567 new cars receiving their number plates. This means that the overall sales figure for the year to date - 112,171 - is down by 0.9 per cent.
Electric car sales continued to slide, falling by 29.3 per cent to 1,259 new electric models registered in August, compared to August last year. That means sales of new electric cars have fallen by 25.3 per cent for the year to date, with 15,129 new EVs registered so far in 2024.
Government must act
Brian Cooke, Secretary General of SIMI, says that the continued fall in EV sales means that the Government must act when it comes to the Budget: “August represents the sixth consecutive month of falling new car registrations this year, highlighted by the continuing drop in electric vehicle (EV) sales, which are now down 25 per cent year to date when compared to last year.
With Budget 2025 fast approaching, it is an opportune time for the Government to intervene to support the electric vehicle project, one which is so crucial for reducing emissions in the Transport sector. Government incentives to date have been fundamental to the EV transition, but they have to be continued and enhanced. SIMI is urging the Government to extend the Benefit-In-Kind (BIK) incentive at current levels, which will help transition the business fleet faster and support the development of a used EV market; increase SEAI Grants back to 2022 levels until the EV market recovers; and accelerate the roll out of a fit for purpose national charging infrastructure. At this crucial stage in the EV transition, these measures will increase the sale of EVs, signalling their importance to consumers, boosting confidence and reassurance in electric vehicles. Budget 2025 presents an opportunity for Government to demonstrate its commitment to fleet electrification and is an opportunity they should not miss.”
Encourage the used EV market
David Savage, of car telematics company GeoTab, says that the Government should do more to encourage the used EV market: “We need to look at why Ireland is selling fewer EVs every month, when countries like France, Spain, Portugal, the Netherlands and the UK are all seeing growth. We can’t simply blame this on the public perception of EVs, when people are voting with their wallets and driving off the forecourt in zero-emission vehicles in other countries. Budget 2025 represents a reset moment for the Irish EV industry and many stakeholders have made a variety of recommendations that could potentially boost the market. Some of the good ideas include PwC’s recommendation to extend grants to the purchase of used EVs; F TA Ireland’s call to overhaul VRT categorisation for electric light commercial vehicles; and Irish Rural Link’s submission which points out a grant to help households upgrade their electrics which could support home charging. Regardless of what specific actions are pursued, the overall objective at this point in time has to be to reverse the slide in EV sales. If other countries can maintain momentum behind the zero-emissions movement, then there is no reason why Ireland cannot follow suit.”
Registrations of vans and light commercial vehicles - often seen as an indicator of underlying economic strength - fell in August by 17.2 per cent compared to August last year, but they are up by 9.3 per cent for the year to date. Imported used cars saw more gains, rising by 18.5 per cent in August, and they have risen by 25.3 per cent for the year to date, fuelled mostly by an increase in imports from Japan.
The best-sellers list
Petrol power still dominates the Irish car market, with a share of 31.3 per cent of sales, followed by diesel at 23 per cent, hybrid at 20.9 per cent, electric at 13.3 per cent, and plug-in hybrids at 9.6 per cent.
Toyota has maintained its position as the best-selling car brand in Ireland in 2024, followed by Volkswagen, Skoda, Hyundai, and Kia. The Hyundai Tucson is still the best-selling car in the country, followed by the Skoda Octavia, the Kia Sportage, the Toyota RAV4, and the Toyota Yaris Cross. Volkswagen is still on top in the electric car market, however shrunken it has become, followed by Tesla, Hyundai, Kia, and BYD. The Volkswagen ID.4 is the best-selling electric car this year, followed by the Tesla Model 3, the Tesla Model Y, the Hyundai Kona, and the Kia EV6. The Skoda Kodiaq was the best-selling car in August, with the Tesla Model 3 taking the top of last month’s electric car sales charts.