The Irish car market has shown remarkable signs of recovery, as new car registrations experienced a significant surge in June. Compared to the same period last year, there was a remarkable 39% increase in new car registrations, with a total of 2,994 registrations recorded.
Throughout this year, registrations have seen a consistent rise of 18.8%, reaching a total of 77,488. The market share of electric vehicles (EVs), plug-in hybrids, and hybrids has continued to grow, constituting 43.63% of the market share. Notably, the EV market has thrived, with a 69% increase in registrations compared to last year, surpassing 14,000 cars.
However, imported used cars experienced a slight decrease of 2.6% in June. The success of the EV market can be attributed to incentives such as grants and tax relief provided to buyers. It is anticipated that adjustments to the SEAI Grant will be implemented from July 1.
Despite being 4% behind pre-Covid 2019, the gap is gradually narrowing, indicating a strong market recovery.
Car Registration Increase
The surge in new car registrations, with a 39% increase in June compared to the same time last year, indicates a strong recovery in the market. This significant growth in registrations suggests an increasing confidence among consumers and a revival in the automotive industry.
The total number of new car registrations in June reached 2,994, a substantial increase from the 2,154 registrations in June 2022. Furthermore, the year-to-date registrations have risen by 18.8% to 77,488 compared to the same period last year. This upward trend in car registrations reflects a positive shift in consumer demand and economic recovery. It also highlights the resilience of the automotive sector, which is gradually closing the gap on pre-Covid 2019 levels.
The consistent growth in new car registrations is a promising sign for the market’s overall health and future prospects.
Electric Vehicle Market Growth
Electric vehicle market continues to show significant growth with a notable increase in sales during the month of June. According to the Society of the Irish Motor Industry (SIMI), the market share of electric vehicles, plug-in hybrids, and hybrids combined has reached 43.63% this year.
The number of electric car registrations has exceeded 14,000 so far this year, representing a remarkable 69% increase compared to the previous year. Notably, June witnessed a substantial surge in electric car sales, with 1,441 registrations, a remarkable increase from the 188 registrations in June 2022.
This growth can be attributed to various incentives offered to electric vehicle buyers, including purchase and home charger grants, VRT relief, and low annual road tax. However, with the reduction in the SEAI Grant for electric vehicles from July 1, the continuation of incentives and attractive business incentives will be crucial to sustaining the momentum in the electric vehicle market.
Imported Used Cars Decrease
Imported used cars experienced a 2.6% decrease in June compared to the previous year. However, year-to-date imports have shown a modest increase of 3.81%.
This decline in June can be attributed to various factors such as supply chain disruptions, increased demand for new cars, and changes in consumer preferences. Despite this decrease, the overall trend for imported used cars remains positive.
The current market conditions, including incentives for electric vehicle (EV) purchases and the growing popularity of EVs, may have influenced consumers to opt for new cars rather than imported used ones. Additionally, the availability of attractive incentives for EV buyers, such as purchase and home charger grants, Vehicle Registration Tax (VRT) relief, and low annual road tax, further contribute to the preference for new cars, especially electric vehicles.
