New car sales fell by 22 per cent in April, compared to the same month last year – which spells bad news for anyone in the motoring trade.
So far this year sales have shown a 7 per cent decline in the number of new cars rolling off the forecourts.
The figures, released today by the Society of the Irish Motor Industry (SIMI), reflect the decline in showroom sales around the country and lack of retail activity overall.
Alan Nolan, Director General of the SIMI says that, “While the industry is still trying to drive sales, the reality is that the peak selling period of 2012 is now over. Because of the seasonal nature of car sales, sales will continue to decline month on month for the rest of the year.”
80 per cent of all new cars are sold in the first half of the year according to the SIMI, so basically they’ve already reached their peak for new cars being sold. However, we’re only into May (although you wouldn’t think so looking outside) so dealers look set to have a tough 2012.
“What we see is staff who are taken on for the busy first quarter, often have to be let go mid year because of the lack of activity throughout the rest of the year.”
The SIMI wants the Government to introduce a second registration plate mid year. They hope that this would create a second sales peak and would maintain and stabilise jobs. However, this isn’t the first time the SIMI has called for a second plate system, like what they currently have in England.
“If there was, like in the UK, a second registration plate in June, the industry would now be gearing up for another busy sales period. But because of the current system, retailers now have to wait until next January, another eight months, for any potential improvement in sales.”
