The generally buoyant and positive mood in the Irish motor trade has been confirmed by the Society of the Irish Motor Industry (SIMI) in its first Quarterly Review of 2015, which was compiled by economist Jim Power.
It highlighted the increase in new car registrations, which totalled 64,714 for the first three months of this year, a 29.68 per cent increase over the previous period in 2014. An even bigger growth was seen in the number of new registrations of light commercial vehicles, which increased by 58.6 per cent.
"The growth in sales is reflective of ongoing improvement in consumer confidence, the labour market and the general economic climate. Credit conditions for motor finance are also good with the new finance products making a significant contribution. Commercial vehicle registrations are a key indicator of business confidence and investment activity," said Power, although registrations of heavy commercial vehicles in the first quarter were down by 20.7 per cent over Q1 in 2014.
Speaking at the launch of the report, Alan Nolan, SIMI Director General, said: "Every county has experienced a strong growth in sales, ranging from Longford with the strongest growth of 47.2 per cent. Wexford is some way behind the trend with the lowest growth rate of just 12.8 per cent. Dublin accounts for 37.7 per cent of the national market, with Cork a distant second at 12.5 per cent. In terms of regional economic impact, the recovery in car sales is giving a boost to employment and general economic activity across the country. Employment in the sector is in steady recovery mode with an increase of 4,500 (12 per cent) jobs in 2014 bringing the total to 41,900 employed in the Industry. 51 per cent of SIMI Members surveyed have also said that they would be increasing their staffing level during 2015."
Anything else?
The report also mentioned that the cost of motoring declined in the first quarter of the year with petrol prices falling by 10.9 per cent and diesel by 11.8 per cent. Buyers are also in a better situation with the average price of a new car having declined by 2.5 per cent. It's not all good news though as insurance costs have risen by 14 per cent on average.