Business

For once Northern Ireland is in the fast lane - helped by Citroen

The new Citroen C3 - indeed Citroen models made up three of the top four best-sellers in Northern Ireland in May
The new Citroen C3 - indeed Citroen models made up three of the top four best-sellers in Northern Ireland in May The new Citroen C3 - indeed Citroen models made up three of the top four best-sellers in Northern Ireland in May

FOR once Northern Ireland is in the UK's fast lane for new car sales after new registrations in May accelerated at their best rate in more than a decade.

And the latest figures from industry body the Society of Motor Manufacturers and Traders (SMMT) also showed the north to outperforming ever region in Britain.

After a first quarter which was the weakest in six years in Northern Ireland, some 4,931 undriven models left showrooms last month (unusually Citroen models filled three of the top four sellers).

That was up 12.5 per cent on the April figure of 4,384, and usurped every other region, which contributed to the overall UK total being down 4.7 per cent.

And in the year to date, Northern Ireland is the only UK region where sales are up on this time last year, albeit marginally at 25,667 versus 25,491 (though the 0.7 per cent rise is set against an overall national decline of 3.1 per cent).

"New car sales have been in the doldrums of late, but this second quarter looks significantly better thanks to a double-digit surge last month, which marked the best May for sales in 11 years," Ulster Bank senior economist Richard Ramsey said.

"The rise of 547 new cars also pushed the year-to-date annual increase into positive territory whereas England, Scotland and Wales all posted declining car sales in 2019."

But Mr Ramsey again cautioned that the favourable monthly performance should be put in context.

"Despite the latest rise, the volume of new car sales in Northern Ireland over the last 12 months is 23 per cent below the 2007 levels, whereas UK new car sales hit a record high in 2016 and are just 2.5 per cent lower than the sales volumes in 2007, so our significant rise in May is coming off a low base."

He said the notable pick-up in sales is likely to reflect more attractive pricing and flexible finance options.

"Traditionally new car purchases are viewed as a key barometer of consumer confidence, as a car represents the largest discretionary expenditure item after a house," he said.

"But in recent years, leasing cars has become more popular and affordable way of car ownership, and in Northern Ireland car leasing and the Motability scheme account for an increasing share of overall car sales."

In the UK as a whole, there was a 20 per cent drop in registrations of new diesel models (two years ago 44 per cent of all new car sales were diesel models while today they account for just over a quarter).

May's top-selling models in Northern Ireland were:

1 Citroen C3

2 Skoda Octavia

3 Citroen C4 Spacetourer

4 Citroen C3 Aircross

5 Ford Fiesta

6 Volkswagen Golf

7 Nissan Qashqai

8 Hyundai Tucson

9 Ford Kuga

10 Toyota Yaris