8 May 2014

National Motoring survey reflects ongoing recovery

There is a significant upturn in the motor industry compared to previous years and the first quarter has already shown a cause for optimism within the industry in Ireland, writes Trish Whelan. New car sales are up by 27 percent for A1 of 2014 compared to the same period last year.

The Society of the Irish Motor Industry (SIMI), in association with DoneDeal, has just released the First Quarter Motor Industry Review for 2014, compiled by economist Jim Power (pictured above) who used data from SIMI and DoneDeal to look at all aspects of the motor industry and the socio-economic impacts on the area over the past several years, and specifically for Q1 of 2014.

Jim Power said the Motor Industry, having experienced a dramatic decline in its fortunes, is back in growth mode again and confidence within the industry is currently stronger than it has been for some time. He said "This is important for national and regional economic activity, employment and Exchequer receipts."

Alan Nolan with the Report
Already this year, the Irish Exchequer has benefitted to the tune of €453.7 million from new car sales in Ireland. This is 5 percent of the total tax take for the country in the first three months of the year. The strongest growth in new car sales in Ireland was in Leitrim which saw an increase of 57.6 percent. Dublin saw the lowest increase in growth, just 16.6 percent but the city represents 36.4 percent of all new car sales.

Commenting, Alan Nolan, Director General of SIMI said the results 'certainly leave us cautiously optimistic for the future of the industry'. "After six extremely tough years for the motor industry here, we seem to be stabilising and the projected figures are positive, but they are just projections.

"The cost of a new car is down, the cost of fuel is down and the Government has also helped the industry by keeping tax levels stable in the last budget. However, if the industry is to rebuild, it is essential that these structures remain in place as a foundation for us to plan the future on."