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New cars registrations fell again in July, in spite of the new 172-plate registration period, slowing by 7.14 per cent compared to July 2016. That is at least a slight reduction in the slow down of registrations, which has been running at ten per cent for the year so far. Of the individual counties, Donegal has experienced the worst slow-down in registrations so far this year, with an 18.6 per cent fall, while Cavan has kept its head slightly higher above water with a 4.4 per cent fall.
We are turning more to hybrid vehicles though, which increased their share of registrations by 1.6 per cent, largely driven by a 34 per cent rise in the sale of Toyota hybrid models, but BMW, Hyundai, and Volkswagen all made contributions to that total too.
Diesel sales now account for 66 per cent of all car sales, compared to 71 per cent in the same period last year. The Society of the Irish Motor Industry describes that as "a welcome rebalancing."
Imported cars continue to eat into sales here, with SIMI reporting that some 46,000 used cars were brought in, all but a handful coming from the UK. That represents a climb of some 42 per cent compared to last year, with some 79 per cent of those imports being diesel cars, and just under half of them being more than five years old.
The report also shows a number of price decreases in the cost of motoring. The average price of a new car in May 2017 was 4.1 per cent lower than a year earlier, while the cost of motor insurance in May 2017 was 8.4 per cent lower than it was a year earlier.
Against this background, Jim Power Economist and author of the SIMI/DoneDeal Report said: "As we move into the second half of the year, all of the factors that influenced the motor trade in the first half will remain relevant. "Economic growth will be supportive, but financial pressures on consumers and the uncertainty around Brexit are likely to continue to weigh on big-ticket items such as new cars. At the same time, imported used cars will remain popular. For the full year, the likelihood is that new car registrations will be 10 per cent down on last year. This would translate into total new car registrations for the year of 132,000."
Gavin Hydes SIMI President commented: "New car sales remain steady, but have not hit the heights of the first half of 2016. Rising living costs and the uncertainty caused by factors such as Brexit continue to weigh on the new car sector. In this context SIMI dealers will continue to offer value to their customers in sales of both new and used cars."