The Society of the Irish Motor Industry (SIMI) this week issued their third Quarterly Motor Industry Review for 2016 in association with DoneDeal, at the SIMI National Retailers Conference held in Killashee Hotel, Naas, Co Kildare.
The SIMI/DoneDeal Report highlights the strong performance in the first half of the year for the Industry followed by a slowing down of new car sales from August onwards.
Sales to the end of September 2016 were 143,190, up 18.4% on the first nine months of 2015. Based on this the SIMI/DoneDeal report forecasts final sales of 147,000 for 2016 with a similar outcome anticipated for new car sales in 2017.
Jim Power Economist and author of the SIMI/DoneDeal Report said: “The auto industry is still performing strongly, but there have been clear signs of deceleration in sales in recent months. Looking ahead to 2017, the outlook for car sales is extremely uncertain. New car sales in 2016 should be close to 147,000 and similar outturn for what is expected to be a very uncertain market due to Brexit effects.”
The Review also indicates the changes in the costs of motoring since last year. The cost of a new car has decreased by 3.5% since September 2015, while the cost of petrol is down 5.0% and diesel is down 4.6% in those 12 months. However the price of motor insurance has increased 25.1% since September 2015 and is up 68.7% since September 2013.
Alan Nolan, Director General, SIMI, highlighted: “2016 has seen the highest levels in new vehicle registrations since 2008, while some of these sales can be attributed to a catch up in the market overall it has been a good year for our Industry.
“New car sales so far have contributed 1.25 Billion to the exchequer 24% ahead on last year.”
“With the peak selling months behind us the Industry has now turned its focus to the 171 registration period as can be seen and heard in current advertising campaigns. While 2017 brings with it an air of uncertainty due to Brexit we would still expect the Industry to continue to perform well, as economic indicators suggest increased spending power in the Irish economy in 2017.”
Cathal Cremen, Commercial Manager of DoneDeal’s Motor Section, said: “2016 has been a very successful year for DoneDeal with over 91,000 cars currently advertised on the site. 259,365 motor adverts have been published on DoneDeal in the third quarter of 2016, with a total advertised value of €1.4 billion. This represents a 17% increase in motor ads compared to the same period in 2015.
“The volume of cars advertised for sale also reflects a rise in the number of dealers advertising on the site.”
“Despite the uncertainty over Brexit, the volume of car ads published with a value in excess €10,000 has increased by over 30% to 42,871 car ads in the third quarter of 2016 compared to the same period in 2015. This very much mirrors the country’s improving general economic performance.”
To view the full SIMI Motor Industry Review in association with DoneDeal visit www.simi.ie/quarterlyreview
Click here to download SIMI/DoneDeal Report infographic
