Tuesday 24 April 2018

Mitsubishi looks to drive strong growth in 2015

Mitsubishi Motors

The Mitsubishi Outlander
The Mitsubishi Outlander
Aine Reidy
John Fisher
Paul Wyse

Smith & Williamson

Mitsubishi Motors Ireland, part of the Frank Keane Group, has a lot to celebrate at the moment, one of them being reaching the significant milestone of the 30-year anniversary for the brand in Ireland. The Irish company can look forward to an even brighter future safe in the knowledge that the Japanese manufacturer is at the forefront of current and next generation vehicle technology.

The first Mitsubishi car registered in Ireland was a Colt, which made its debut at the end of 1984. Thirty years on, the brand has delivered more than 100,000 vehicle sales to Irish customers, and is currently represented by 25 established dealers offering a competitive new vehicle range, including both passenger and commercial vehicles across a total of 11 model variants.

In 2014 Mitsubishi Motors has enjoyed a very successful year in Ireland and is excited for the future.

Its passenger car sales have increased over 21pc and commercial vehicle sales have jumped over 188pc. Gerard Rice, MD of Mitsubishi Motors Ireland, said that Mitsubishi Motors is well positioned to continue its sustained growth and brand story into 2015 and beyond.

Paul Wyse, Managing Director, Smith & Williamson Dublin

The motor trade has seen a spectacular increase of circa 30pc in sales of new vehicles this year with 95,989 unit sales by 31st October. The outlook for 2015 within the industry is focused on continuing the recovery in the sector.

The confidence in the Irish economy is fuelling consumer confidence and as such it is expected that there will be further growth next year. The strong growth of the motor trade in Ireland has also had a positive impact on the economy as a whole with an additional 2,300 people being employed in the motor sector by June 2014 as against 2013.

However, while it is highly positive that revenues and employee numbers are increasing, it is important for motor dealers to ensure that there is enough working capital facilities available in their businesses. This ensures that cash flow pressures are minimised and opportunities to acquire stock at good prices are not lost. We recommend having cash flow projections prepared well in advance.

Aine Reidy, Partner, Audit & Assurance, Smith & Williamson

Mitsubishi Motors Ireland has witnessed the highs and lows of the economic cycle throughout its 30-year presence in the Irish market. Unsurprisingly, the past number of years has proved difficult for the sector as a whole and all manufacturers operating within the Irish market. As the sector continues its impressive recovery from the recession the focus of the consumer has shifted noticeably in the direction of lower motoring costs and energy-efficient technology.

The downturn has changed the way consumers think and they are far more astute when it comes to getting value for money. At a corporate level Mitsubishi Motors Ireland, which operates within the Frank Keane Group, is well-equipped to take commercial advantage of the developments in its product range.

With 2014 already guaranteed to close with strong growth figures in terms of sales, the company can look forward with confidence as it enters its thirty-first year in Ireland.

John Fisher, Associate Director, Tax, Smith & Williamson

In the wake of the recession Irish consumers are more cost-conscious than ever before. This is reflected strongly in their purchasing decisions when it comes to cars. Consumer preference for more fuel-efficient cars has reduced energy use in the transport sector by 25pc since 2007, according to figures from the Sustainable Energy Authority for Ireland. Changes in car taxation to penalise carbon dioxide emissions and promote fuel efficiency have fuelled this seismic shift in consumer behaviour.

The advance in energy efficient technology for motor vehicles, as evidenced with the Outlander PHEV, is an attractive proposition.

A perceived barrier to the growth in sales of energy-efficient motor vehicles is the relative high cost compared to similar non-energy-efficient vehicles, however the Outlander only costs €2,000 more than the equivalent diesel automatic model and so should help to drive additional growth in Mitsubishi.

 

 

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