The Society of the Irish Motor Industry (SIMI), in association with DoneDeal, has released their Third Quarter Motor Industry Review for 2014.
The Review was compiled by Economist Jim Power using data from Revenue, CSO, NVDF and RSA as well as SIMI and DoneDeal for the first three quarters of 2014 covering sales, job creation, fuel prices and vehicle safety. It also surveyed Motor Industry businesses on issues currently affecting them.
The Review shows that the upturn in the Motor Industry continued in the third quarter with sales for 2014 now looking likely to exceed 95,000, which is 15% ahead of the Industry’s expectations 12 months ago. This increase has seen the Exchequer collect €902million in VRT and VAT from new and used car sales during the first 9 months of the year which is 27.9% higher than the corresponding period in 2013.
The biggest increase in new car sales in the first nine months of 2014 has been in Cavan, with an increase of 54.8% compared to last year, while Dublin has the lowest with an increase of 22%, although Dublin has the biggest percentage share of sales at 40.3%.
The Review also highlighted a 3.9% decrease in petrol costs, a 4.6% decrease in diesel costs and a 2.8% decrease in the cost of a new car. Motor insurance costs, though, have risen by 6.7% compared with 12 months ago.
The recent Budget saw no increases in motor related taxes, with VRT, Road Tax and Fuel Taxes all remaining untouched. As a result the outlook for 2015 remains one of steady recovery in the Sector with increased sales increased employment and increased tax contribution to the Exchequer.
Alan Nolan, Director General of SIMI, said; “The decisions taken in the recent Budget have laid the foundations for continued steady growth in the Motor Industry during 2015. The better business environment in the sector this year has resulted directly from the improved consumer confidence and we would be very hopeful that the market will continue to grow in response to the more positive outlook for consumers in the wake of the Budget.
A key contributor in the mid-year boost in sales was the “142” registration plate from the 1st of July with sales for the second half of this year already representing over 30% of new car sales in 2014 compared to 17% for the second half of 2012, the last year under the single plate system.
Economist Jim Power, who is author of the SIMI Motor Industry Review, said; “It was vitally important that Budget 2015 did nothing to upset the auto market, as it increasingly makes a significant contribution to the Exchequer finances and employment. Budget 2015 contained nothing directly related to the Motor Industry, but indirectly it should help to support the market in 2015 by giving some support to consumer confidence and spending power, and by strengthening the emerging recovery in the economy. The evidence available at the moment suggests that the market could grow by close to 120,000 in 2015.”
DoneDeal’s statistics have also reflected the upturn in the motor industry in the first nine months of 2014. In September 2014 there were 74,461 classified advertisements for the motor trade on the site, an increase of 12.4% from September 2013.
Cathal Cremen, Commercial Manager of DoneDeal’s Motor Section, said; “It is great to see the continued upturn in business activity for the motor industry. The Third Quarter Motor Industry Review for 2014 highlights that all the positive market indicators for a vibrant sector are moving in the right direction. This momentum is also reflected in the latest figures we have analysed for the used car market and we are confident that we will see continued growth into 2015 as more and more consumers look to replace and upgrade their cars.”
To view the full Third Quarter “SIMI Motor Industry Review in association with DoneDeal” log on to http://www.simi.ie