Business

New car sales increase TOP 10 REGISTRATIONS

SALES of new cars in Northern Ireland continued to spiral in May with an increase of almost 12.5 on registrations compared to the same month last year.

There were 4,762 cars registered during May in the north, up by 12.42 per cent on a year ago, the Society of Motor Manufacturers and Traders (SMMT) said.

Northern Ireland new car registrations for the year to date meanwhile are 14.25 per cent up on the first five months of 2013.

It puts the north ahead of the UK average of 11.68 per cent while the increase also outstrips each of England, Scotland and Wales.

Perennial favourites Volkswagen Golf, Ford's Fiesta and Focus and Vauxhall Corsa continue to be the most popular models.

Increasing car sales are considered another sign of economic recovery in the north as people start to invest again in so-called 'big ticket' items as they finally feel the pinch easing.

Across the UK, registrations have now experienced their longest-ever period of growth.

A total of 194,032 new cars were registered in May - a 7.7 per cent rise on the May 2013 figure,

The increase last month was the 27th consecutive monthly rise - beating the previous record of 26 months of growth between May 1987 and June 1989.

Although figures are positive, Ulster Bank's chief executive in Northern Ireland, Richard Ramsey, pointed out there is still some way to go to match peak levels.

"The rise in new car sales in Northern Ireland is further evidence of the ongoing economic recovery," he said.

"Last month's sales figures represented the 16th consecutive year-on-year rise in new car sales.

"However, Northern Ireland's consumer recovery, as evidenced by new car sales, has still lagged behind that of the UK.

"So far, Northern Ireland has recouped 42 per cent of the decrease in new car sales that followed the downturn.

"New car sales in Northern Ireland are still around 19 per cent lower than they were in 2007. This means that, despite the recovery, there are still 245 fewer new cars sold each week in Northern Ireland than there were seven years ago."

He added: "The overall sales figures conceal changing patterns of consumer behaviour.

"For example, there has been a move towards smaller, more fuel efficient vehicles and value-for-money brands."

SMMT chief executive Mike Hawes said: "The new car market has now grown in every month since March 2012 - the longest period of growth on record and a reflection of the UK's ever-improving economic conditions.

"With SMMT forecasting an overall rise of around six per cent over the year, the coming months should see some levelling off in growth rates as underlying demand stabilises."

1 Volkswagen Golf 2 Ford Fiesta 3 Ford Focus 4 Vauxhall Corsa 5 Nissan Qashqai

6 Dacia Sandero 7 Vauxhall Astra 8 Seat Leon 9 Renault Captur 10 Hyundai ix35