Pent up demand and an easing in supply chain issues have seen another ramp up in the number of new cars sold in Northern Ireland.
Figures from the Society of Motor Manufacturers and Traders (SMMT) showed 4,108 new cars were registered in the province in June, a jump of some 18% on the same month last year. The most popular new car sold was the Ford Puma, followed by the Hyundai Tucson and Kia Sportage.
The overall increase was in line with other parts of the UK and comes despite the inflationary environment which has put pressure on household finances. The SMMT said waiting times for new cars have been cut significantly from the peak of the Covid-19 pandemic when manufacturers struggled to meet demand and alluded to pent-up demand from consumers.
Richard Ramsey, chief economist at Ulster Bank in Northern Ireland, said additional borrowing costs will change the shape of the new car market in the future.
“Downsizing is often viewed as a feature of the property market,” he said. “We may increasingly see motorists downsize to smaller, more affordable makes and models too.”
The SMMT said there is a swing towards more environmentally friendly vehicles such as electric and hyrbids, although petrol models remain the most popular. Diesel vehicles, considered more polluting, saw registrations fall for the UK as a whole.
“The new car market is growing back and growing green, as the attractions of electric cars become apparent to more drivers,” Mike Hawes, SMMT Chief Executive, said. “But meeting our climate goals means we have to move even faster.
“Most electric vehicle owners enjoy the convenience and cost saving of charging at home but those that do not have a driveway or designated parking space must pay four times as much in tax for the same amount of energy. This is unfair and risks delaying greater uptake, so cutting VAT on public EV charging will help make owning an EV fairer and attractive to even more people.”
