Ireland’s November New-Car Sales Continue Monthly Decline
New-car sales to date are down 10,000 units compared with year-ago. Given that each delivery generates €7,700 in tax revenue for the government, this represents a loss of nearly €80 million, an auto industry group says.
Irish new-car sales climbed 13.5% to 883 units in November compared with year-ago but tumbled 46.7% from October, continuing a string of six month-on-month declines since May.
The Society of the Irish Motor Industry says the latest result left 11-month deliveries down 11.5% to 79,182 units.
SIMI Director General Alan Nolan says new-car sales to date have declined by 10,000 units compared with like-2011. Given that each new car generates €7,700 ($10,058) in tax revenue for the government, this represents a loss of nearly €80 million ($104.5 million) from the auto industry.
The government’s new budget is expected this week, and all indications are the industry is facing an increase in the vehicle-registration tax. “Clearly increased sales will deliver far more in tax revenues to the state than increasing the tax rates,” Nolan says in a statement.
“Decreasing car sales also impact on employment, with overall jobs in the motor industry reducing from 39,400 last year to 35,700 by the middle of this year.”
Total new-car sales for 2012 are forecast at 75,000 units, which means auto industry employment is set to fall further next year, Nolan says, adding the industry still is hopeful that a second registration period will be introduced in July.
“We have been highlighting the problem of seasonality in the motor industry for many years; 80% of new-car sales occurring in the first half of the year means that many businesses in the motor industry have to let staff go midyear due to lack of activity. A second registration period should help to spread business more evenly through the year.”
Toyota led the new-car segment in November with sales up 31.5% to 121 units. Volkswagen followed, down 13.0% to 120, and Ford placed third, up 37.9% to 91.
VW leads the new-car market to date, with 11-month deliveries down 10.0% to 10,026 units, followed by Toyota, down 15.5% to 9,912, and Ford, down 18.9% to 8,526.
The only winner this year is Hyundai, with year-to-date sales up 30.7% to 5,236 units, moving ahead of Opel, down 19.9% to 5,095.
Light-commercial vehicle deliveries slid 5.9% to 287 units in November, leaving the 11-month total down 3.2% to 10,818. VW led the segment in the first 11 months, up 27.2% to 2,404, ahead of longtime leader Ford, down 8.0% to 2,293.
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