New cars registrations slumped 6.4 per cent in June compared to same period last year and by 2.6 per cent over the first six months of 2003, according to figures released by the Central Statistics Office (CSO).

First licensing of second-hand cars, however, rose 11.9 per cent year-on-year, suggesting the used motors market may be recovering after a number of years in the shadow of the new cars sector.

The combined number of vehicles registered in the first six months of 2003 climbed 0.6 per cent on the same period last year to 143,885. The increase is largely attributable to a 13.4 per cent rise in registration of goods vehicles.

Ford remained the most popular marque, with 1,809 registered in the first six months, followed by Toyota (1,727), Volkswagen (1,239), Nissan (929), Renault (619) and Opel (611). Despite the downturn, luxury cars remain popular with 430 Mercedes-Benz and 300 BMWs registered.

The figures refer to vehicles taxed for road use and do not reflect car sales.

Some 12,180 new cars were registered in June compared to 13,017 for the same month last year and 15,688 for the corresponding period in 2001. The number of new cars registered in the first six months was 101,866 against 104,546 in the first half of last year and 115,083 in the first six months of 2001.

The highest number of new car registrations last month was in Dublin (4,746), followed by Cork (1,594), Galway (514), Kildare (490), Limerick (484) and Meath (447). Vehicles owned by the State and registered with disabled drivers are exempt from the survey.

Earlier this week it emerged average retail prices for new cars in Ireland rose by 7.8 per cent over the 12 months to June 2003

According to the European index of new car prices, costs across Europe rose by an average of 5 per cent over the 12-month period to June.

The industry has forewarned about the price rise for some time. Due to new rules concerning price harmonisation in the EU, Irish pre-tax prices are set to harmonise with other EU states.

The new rules are aimed at increasing competition and are forcing manufacturers to introduce a single pre-tax price across all 15 member-states.

Previously car firms offered Irish distributors cars at a discount to compensate for the high tax imposed on new cars.