New automobile profits tumble 26.5% on again of most up-to-date lockdown

New automobile gross sales ended up down 26.5 per cent more than the to start with 10 days of this yr, hit by Covid limitations and delays due to the administration of new Brexit guidelines.

In what is customarily the busiest income thirty day period of the yr, 9,765 new automobiles had been registered in the Republic by January 10th, down 3,523 on the exact interval past year.

The most recent Covid-19 lockdown means dealer showrooms are shut, with sales limited to click-and-supply operations, although servicing departments remain open up. Most of the new cars registered would have been on buy by shoppers from the finish of previous year.

On best of the Covid constraints, amplified administration owing to Brexit has prompted some delays in deliveries. In particular, dealers are reporting that pieces provides have been impacted, though a lot of had constructed up stock concentrations prior to January 1st.

According to Robert Male, director aftersales for Volkswagen Team Ireland, their organizing has mitigated some of the difficulty, but substantial delays remain.

“We have performed considerable do the job since 2016 to strategy for the latest circumstance. Having said that, it is good to say that there are delays in all stakeholders’ units. About 50 per cent of our vans – which equates to about 15 trucks for every week – are now held up in Dublin Port. ”

The to start with three months generally account for up to 57 for every cent of overall annual new vehicle income. Volkswagen Group Eire and Ford have referred to as on the Federal government to lengthen the current VAT reduction – from 23 for every cent to 21 per cent – until the end of June. The reduced fee is because of to expire at the finish of February.

VW Team says this would let the Irish vehicle marketplace to counteract the consequences of a curtailed market place at the start off of this yr.

The team accounted for 28.4 per cent of the Irish new car or truck sector very last yr.

Volkswagen Team Eire running director Carla Wentzel reported: “Limited assortment and shipping of automobiles will continue inside of Government recommendations at retailers that elect to do so, and our merchants can now do the the greater part of the sales process, from ordering a motor vehicle to finance acceptance remotely. But constraints will continue to imply a drastically decreased market place, and consequently a reduction in essential tax-take from our sector.

“The continuation of the VAT reduction will go some way to incentivising new automobile profits past the conventional January rush.”

Diesel engines

Figures for the to start with 10 days of this 12 months clearly show a major change absent from diesel to petrol-electric powered hybrids. Diesel engines make up 34.6 per cent of new vehicle gross sales, only a little bit in advance of petrol with 34 per cent.

Petrol-electric hybrids, on the other hand, now account for 21 for every cent, up from 15 for each cent this time previous calendar year. Plug-in hybrid gross sales have also increased, now building up 4.4 for every cent of sales, although fully-electric cars and trucks make up 3.25 for every cent. In the first 10 times 317 absolutely electric vehicles ended up marketed.

In terms of brands, Toyota is out in entrance with 1,515 registrations, in advance of Hyundai with 1,193, Ford with 1,052 and Nissan with 760. The most effective-offering product is the new Hyundai Tucson, with 627 registrations.

Utilized car or truck imports fell 7.7 for every cent as new tariffs ended up utilized to British imports from January 1st. Some 1,804 utilised imports have been registered in the Republic this calendar year.

Along with custom declaration varieties, customs responsibility of 10 for every cent is billed on autos from Britain, alongside with the common Vehicle Registration Tax (VRT) and NOX emissions Levy. VAT is also billed on imports no matter of the age of the car or truck. Previously VAT was only charged on new autos, or utilized autos considerably less than six months previous or with much less than 6,000km on the clock.

An exception to these rates is for vehicles imported from the North, which are exempt from the 10 for every cent customs responsibility. It is also not billed on cars that are crafted in the Uk.