Car sales up 20% in 1999, - SIMI

Car sales in the Republic were up 20 per cent in 1999 as the thriving economy again triggered rising levels of car ownership, according to the Society of the Irish Motor Industry (SIMI).

Sales for the year just exceeded 174,000, compared to sales last year of 145,000.

The 1998 figure was itself a record, being an increase of 8,000 on 1997's data.

The increase in car sales is an indication of the continuing economic boom and in particular the rising number of people in employment and the rise in immigration, according to Mr Cyril McHugh, the society's chief executive.

The trend towards increased sales of smaller cars continued during 1999. A breakdown for sales of the various marques for the entire year is not yet available but the figures to end November showed largest sales of Ford (19,060), Toyota (18,867), Opel (17,685), Nissan (16,393) and VW (16,380) cars.

By contrast, the more expensive marques sold as follows: BMW (2,662); Mercedes (3,583); Saab (684); Jaguar (136); MG (54); and Porsche (28). Despite the economic boom, not a single Rolls Royce was sold in the period to the end of November.

There was a particularly large year-on-year increase in car sales during November, when 4,936 passenger cars were registered as sold, compared to 3,425 in November 1998.

But the 44 per cent increase in November was followed by a 6 per cent drop in the number of cars sold in December (1,990) as against December of last year (2,025).

Mr McHugh says the society expects the upward trend in car sales to continue during 2000. "Car ownership is still low in the Republic compared to the EU generally. Not taking the rise in population into account, the ratio here is about 30 per 100, compared to 36 per 100 in Northern Ireland, and 50 per 100 in places like Germany.

"If the economic boom continues, then we expect the ratio here to rise to the equivalent of Northern Ireland or Scotland, rather than to mainland European levels."

The reason for this was the continuing effect on the population's age profile arising from the years when there was significant net emigration. Another factor was the relatively high proportion of people living in urban areas. This year, he added, about 140,000 old cars would have been taken off the road, giving a net increase of 30,000 vehicles; in 1998 about 125,000 cars were taken off the road.

Overall revenue for the sector is about £5 billion, including new and used car sales, parts, repairs and fuel sales, "but about £2.5 billion of that goes to the Revenue, in excise duty on cars and fuel and VAT". The sector employs about 46,000.

Mr McHugh says that in general, two to 2 1/2 used cars are sold for every new car, making for used-car sales this year of 340,000 to 425,000. "It's an important part of our business." The number of used imports being sold in the Republic dropped significantly over the past number of years and this trend continues, he says.