FIGURES
released by the SIMI (Society of the Irish Motor Industry) at the end of the
summer showed a decline in new car sales of 36 per cent in August compared to
August of last year.
Light
Commercial Vehicle registrations are also down 19 per cent in August but are up
year on year while Heavy Goods Vehicle registrations have seen an increase of six per cent in August.
Director
General of SIMI, Alan Nolan, said: “Some stability had returned to
companies and employment in the sector over the last 18 months but business has
remained very difficult.
“We
started from a very low base following 2009 sales but the year to date figure
for new car sales is still reasonable when you note that we are already at 96
per cent of the full year total for last year.
“However,
the market is still extremely fragile and we have to be concerned at the 34 per
cent reduction last month compared to August last year. Certainly this concurs with feedback from
members that business is very tough.
?
“Some
fall-off was to be expected with the ending of scrappage as nearly a third of
all new cars sold last August were bought under the scheme and we can expect to
see this fall-off reflected in the monthly sales figures for the rest of the
year.
“This
is a clear indication of the weakness of the real underlying market which is
very slow and is also the case for servicing and repairs, as well as sales.
?
Mr
Nolan highlighted the importance of building on the benefits that scrappage
brought.
“While
in recent weeks we have seen the return of some garage closures, nevertheless,
the Industry made some progress this year thanks to scrappage, particularly in
relation to employment,
? he said.
“However, the first quarter of next year will
be crucial for us, following what will be a difficult last quarter this year
and it is likely that we will still be facing an extremely challenging
environment.
“Stability
in the business environment will be the key issue for our sector into
2012. This is a message we will be
carrying to Government in relation to the Industry’s efforts to maintain the
progress in sustaining jobs that we have made over the last two years.
?