March 2023 was a bumper month for Irish new car sales, with 17,676 new cars registered, an increase of 37 per cent on the same month last year.
It puts new registrations up to 58,116 for the first three months of the year, a 16.5 per cent rise on last year, although as the industry constantly reminds us, that's still 9.4 per cent down on the total for the first quarter of 2019, the last of the pre-Covid and pre-chip crisis years. However, March 2023 sales were six per cent ahead of March 2019, so perhaps the market really is returning to a semblance of normality.
Changes to SEAI grant
Equally, it's possible that Irish buyers are rushing to buy new electric cars ahead of the reduction in the electric car purchase grant in July. From the 1st of July, the €5,000 grant - administered by the Sustainable Energy Authority of Ireland (SEAI) - will be cut to €3,500. That said, we have been told that if you apply for and receive confirmation of your grant before June 30th, there will be a four-month grace period in which to register your new EV, and that period could potentially even be extended if you can show proof that production and delivery of your car were delayed.
Whatever the wrangling over the grant, electric car sales have leapt ahead in March, with 3,421 new EVs registered in the past month, compared to 1,924 in March 2022. For the year to date, 9,303 new EVs have been registered, a 49 per cent rise on 2022's figures.
Combined sales of electrified vehicles - bunching EVs with hybrids and plug-in hybrids - now dominate the market, with 44.6 per cent of all sales. Petrol cars were on 32.6 per cent, and diesel cars are bumping along the bottom - despite a small recent diesel revival - on 22.8 per cent of total sales.
Commenting on the latest figures, Brian Cooke, Director General of the Society of the Irish Motor Industry (SIMI), said: "New car registrations for the month of March indicate a strong performing market with a 37 per cent increase on the same month last year. However, some of this increase is due to the fulfilment of the backlog of orders built up since the start of the year. The March market means that first quarter new car sales of 58,116 are 16 per cent ahead of last year, but still nine per cent behind pre-COVID 2019. Commercial vehicle registrations for both the heavy and light sectors have also delivered a strong performance during first quarter. The momentum behind electric vehicles shows no sign of abating, with 9,303 new electric cars registered to date in 2023, an increase of 49 per cent on 2022.
Early stage in the EV project
"The Government's temporary change to Benefit-in-Kind regime for the current year, is very much welcomed by both employees and the Industry, and will no doubt encourage the company car EV market. It is vital that this enhanced threshold is extended out beyond this year. On the other hand, the decision to reduce the electric vehicle car grant for the July registration period is extremely disappointing at this still relatively early stage in the EV project. It is important to underline however, that in addition to the grant support, there is still VRT relief for many EVs as well as low annual road tax, which along with the home charger grant means there is still a very strong basket of incentives available for those considering the purchase of an electric vehicle. It is important that there is no further diminution of these EV supports over the next couple of years."
Interestingly, the imports of used cars seem to be rising slightly, again with a 23.9 per cent (4,699) increase in March 2023, compared to March 2022 (3,793). Year-to-date imports are up seven per cent (12,474) on 2022 (11,639).
Light Commercial vehicles (vans) are up 71.4 per cent (3,453) compared to March last year (2,015), and year to date, are up 24 per cent (11,587). HGV (Heavy Goods Vehicle) registrations are also showing an increase of 26.4 per cent (273) in comparison to March 2022 (216). Year-to-date HGVs are up 42.6 per cent (964).
Which cars are we actually buying? Well, Toyota is still the best-selling brand overall, and Volkswagen has snatched second place in the charts from Hyundai, which moves down to third. It's followed by Skoda and Kia, rounding out the top five.
Tucson still the best-selling model
The best-selling model remains the Hyundai Tucson, with its brother, the Kia Sportage, now nipping at its heels in second place. The rest of the top five are all Toyotas - Yaris, CH-R, and Corolla.
Volkswagen is the top-selling brand in electric car sales, followed by Hyundai, Kia, Tesla, and BMW. The VW ID.4 is the best-selling electric model, followed by the Hyundai Ioniq 5, the Tesla Model Y, the Skoda Enyaq, and the Hyundai Kona.
The overall top-selling car for March was actually the Nissan Qashqai, specifically the newly-introduced 'e-Power' range-extender hybrid version. Nissan Ireland told CompleteCar that its dealers had been "Inundated with test drive bookings since the car arrived in Ireland and almost everyone who has test driven the car has decided to make the switch to e-Power."
"The number one reason why test drivers are deciding to buy the car is down to the fact that it drives in electric mode 100 per cent of the time. This is what sets it apart from any other hybrid on the market," said Seamus Morgan, Managing Director of Nissan Ireland. "Nissan e-Power is a game-changer and we knew that it would shake up Ireland's EV market. Test drivers are very excited by the technology and have been quick to make the switch. We anticipated this positive response and we are well stocked to meet demand."