Car dealers are anticipating a particularly difficult March after a 10.6 percent drop in new registrations in the first two months of the year.
Tipperary dealerships have fared a little better than the national average, with 1,195 new sales this year – down seven percent on the figure for the first two months of 2020.
Director General of the Society of the Irish Motor Industry, Brian Cooke, says strong pre-orders, the click and deliver service, and a reduced VAT rate have helped them in the first two months of the year.
He anticipates this will be difficult to maintain this month:
“While new car sales were slightly up when compared to February last year, they are down 11% year to date and down 18% on 2019. Strong pre-orders at the end of last year along with the ability to offer a click and deliver service have helped the Industry, as has the reduced VAT rate during the first two months of the year, which has brought some March sales forward.
“Looking ahead to March, with most year-end pre-orders having been fulfilled, the increased VAT rate and with the absence of car hire, it is anticipated that the month ahead will be a challenging one for the Industry. From a health and safety perspective, the Industry has proven during the duration of the pandemic that showrooms can operate in a safe environment for their employees and customers.
“The large size of dealerships, the low average footfall, the ability to do business on a strict appointment only basis and the option of displaying cars outside lends itself to social distancing and safe retailing. Car sales are very low risk, but offer a high return to the State in terms of employment and Revenue. In this context SIMI members are ready to open showrooms for business safely, but if this is not possible a move to click and collect would help the sector in the interim.”
