Dealers in crisis as new car sales plummet 18pc
NEW car sales plummeted by 18pc in May and the outlook for the rest of the year is reduced, writes Aideen Sheehan.
The Society of the Irish Motor Industry (SIMI) warned that sales were set to fall from nearly 90,000 in 2011 to just 75,000 this year. This would be just half the level seen in 2008.
A 'normal' level of car sales would be about 130,000 a year and the Government stands to lose up to €385m in tax revenue from the shortfall, SIMI said.
So far in 2012 just 60,315 cars have been sold compared with 66,072 this time last year when the government scrappage incentive still applied.
New car sales for May were 7,719 compared with 9,440 for the corresponding period last year.
SIMI spokeswoman Suzanne Sheridan said lack of business had forced some long-established dealerships to close recently such as the well-known HB Dennis in Fairview, Dublin.