New car registrations fell by 22 per cent in September, compared to September 2020, although they were significantly up compared to September 2019.
More than 100,000 new cars have been sold in 2021
4,426 new cars were registered in September in Ireland, compared to 5,651 in September 2020 (-22 per cent) and 3,418 in September 2019 (+29.5 per cent). That puts new car sales for 2021 up over the 100,000 mark. They now stand at 100,646, compared to 84,515 for the same period in 2020 (+19.1 per cent) and 113,945 in 2019 (-11.7 per cent).
Sales of electric cars continue to grow substantially - 775 were registered in September, compared to 659 in September 2020 (+18 per cent). 7,827 new electric cars registered year to date in comparison to 3,613 in the same period 2020 (+117 per cent).
Taxation and chips shortages a concern
Nonetheless, the Society of the Irish Motor Industry (SIMI) is casting dire warnings about what may happen in 2022 if rumoured changes to the vehicle registration tax regime (VRT) go ahead in the October Budget. "Despite a 22 per cent (4,426 units) decline in total new car registrations for the month of September, the electric vehicle segment has seen an increase of 18 per cent (775 units) when compared to the same month last year. With an annual growth rate of 117 per cent, the upward trend in Electric Vehicles is hugely positive, but would not have been achieved without the availability of the generous Government incentives. In this context, SIMI is calling on the Irish Government to provide certainty and support for consumers by showing its support for the EV project. Any proposals to increase Vehicle Registration Tax on low emitting cars or to withdraw Electric Vehicle supports would only serve to have a detrimental effect reducing carbon emissions" said Brian Cooke, SIMI's director-general. "With both the detail of the Climate Action Plan and Budget 2022 imminent, now is the time for Government to show leadership and help motorists make the best possible choices. This means for Budget 2022, no increases in VRT, the extension of both the EV Grant system and 0 per cent Benefit-in-Kind (BIK) beyond the current expiry dates and, in conjunction with private enterprise, investment in a national charging infrastructure. As we start on the road to zero emissions transport, increasing taxes makes no sense and penalises those who want to make better environmental choices. The EV numbers this year speak for themselves; the Industry has supplied the cars and the Government has provided the incentives, thus allowing consumers to make strong environmental choices. By keeping on this pathway, we can continue to provide the retail environment to help drive down emissions."
What's currently unclear is what exactly drove the fall in sales in September this year, compared to September last year. Clearly, sales in September 2020 would have been significantly driven by a backlog of demand from the lockdowns earlier in the year. While sales of new cars have recovered strongly in 2021, it's possible that such pent-up demand, hanging over from last year, has now petered out. Equally, it is possible that buyers are staying away because they cannot be certain of actually getting hold of a new car, given the exponential increase in delivery wait times thanks to the global shortage of semiconductor chips. Quite how the various influences of general demand, taxation changes, and semi-conductor shortages will play out over the next 12 months remains to be seen.
Light Commercials Vehicles (LCV) have seen a decrease of 1,701 registrations compared to September last year 2,250 and an increase on 1,336 registrations for the same month in 2019. Year to date 26,533 new LCVs were registered an increase on last year's 18,951 (+40.0 per cent) and on 23,240 in 2019 (+14.2 per cent).
Diesel still the most popular fuel type
4,952 used cars were imported in September 2021, compared with 9,520 imports in September 2020, a decrease on the 10,221 imports in September 2019. Year to date used imports are up 4 per cent (51,136) on 2020 (49,188) and down 38 per cent on 2019 (82,435).
In the best-seller charts, Toyota is still the best selling brand for the year as a whole, ahead of Volkswagen, Hyundai, Skoda, and Ford. The Hyundai Tucson is still the best-selling single model, ahead of the Toyota Corolla, Toyota Yaris, Volkswagen Tiguan, and Toyota RAV4.
The Hyundai Tucson was the best-selling vehicle in September. Diesel remains the most popular fuel choice - just. It's on 33.8 per cent, with petrol on 32.32 per cent. Fully-electric cars account for 7.78 per cent of the market, with plug-in hybrids on 7.18 per cent and hybrids on 16.6 per cent.