Ireland’s June Car Sales Plunge Ahead of New Plates

Ireland’s new-car sales plunge to an unprecedented 73.6% in June as buyers await the arrival of a new split-number plate system in July that marks the start of the year’s second half.

Society of the Irish Motor Industry data shows auto makers delivered just 1,673 units in June, down from year-ago’s 6,350.

Irish number plates include the year the car is first sold in Ireland. But for the first time, the plate designations are being divided, with “131” for the first six months of this year and “132” for the second half.

Shane Teskey, managing director of vehicle data and intelligence website Motorcheck.ie, says the introduction of number plate “132” in July may have put some buyers off in June. “The next week or so will be a very important period for an industry that's already in crisis,” he says in a statement.

The June result left the year-to-date total down 20.1% to 53,230 units from prior-year’s 66,647.

Volkswagen led new-car deliveries in the month, despite plummeting 59.4% to 264 units; ahead of Toyota, down 72.8% to 239; BMW, down 56.2% to 141; and Ford, down 85.1% to 117.

VW led the year-to-date results as well, down 18.4% to 6,730 units; followed by Toyota, down 32.3% to 5,753; and Ford, down 390.2% to 5,001. Fourth-placed Hyundai eked out a 1.9% increase to 4,311.

Light-commercial vehicle sales plunged 48.1% to just 446 units in June. Ford topped the month’s result, down 17.7% to 121; followed by VW, down 66.8% to 68. Ford also led LCV deliveries in the year’s first half, down 5.7% to 1,577 units; ahead of VW, down 15.3% to 1,321.

SIMI Director General Alan Nolan says June’s sales crash was not a surprise as people waited for the arrival of new “132” registration plate.

“As this is the first day of July, it is obviously very early to make any firm predictions, but out on the forecourts, dealers have reported a lot of interest from motorists in the buildup to the new plate,” Nolan says in a statement.

“Nearly all manufacturers and dealers have produced special offers for the introduction of the 132 plate, so it should be happy sunny days for car buyers in July.”

SIMI President Paul Linders says his group had been seeking a 2-period registration system for more than five years.

“Our industry has become very seasonal, with 70% of new car sales occurring in the first four months of the year,” he says. “This has resulted in unnecessarily difficult stocking and funding pressures on car dealers in the first half of the year.”

To promote the change aimed at spreading sales throughout the year, SIMI produced a special 132 logo with the motto “Think July – Think New Car” and a dedicated website.

“Contrary to popular belief, the change to the registration system, which is here to stay, is not an attempt to avoid the number 13,” Linders says.

“While car sales are down overall this year, we would expect to see some pick-up in July as interest develops in the new period. But in reality, this is a long-term project for us and it will take some years to significantly change traditional buying patterns.”

The Irish Independent newspaper says the motor industry, in a further effort to boost sales, is planning to ask the government for swappage scheme for owners of middle-aged cars involving a vehicle-registration tax rebate when they trade in for a new model. The amount of the rebate involved could be linked to the age of the car.

The newspaper says if the plan is approved it could be in place for the traditional start-of-year January sales.

The newspaper says new-car deliveries this year are expected to reach just 68,000 units. When rental and company-car purchases are excluded, the number of private buyers is likely to be less than 30,000 – a level that cannot sustain an industry.