Business

Sales of new cars down by 15,000 in Northern Ireland during 2020

Car dealerships reopened on June 8, but the Covid-19 lockdown decimated sales in April and May. Picture by Hugh Russell.
Car dealerships reopened on June 8, but the Covid-19 lockdown decimated sales in April and May. Picture by Hugh Russell. Car dealerships reopened on June 8, but the Covid-19 lockdown decimated sales in April and May. Picture by Hugh Russell.

THE coronavirus pandemic left 2020 as one of the worst years on record for new car dealers.

Figures compiled by the Society of Motor Manufacturers and Traders (SMMT) show 36,191 new cars registered in Northern Ireland during 2020, just over 15,000 cars down on 2019 (29.7 per cent).

Economist Richard Ramsey said the UK wide industry had recorded its steepest annual fall since 1943.

Sales of new cars have been in steady decline in Northern Ireland in recent years. But the impact of Covid-19 on car showrooms and consumer confidence put a massive hole in the industry in 2020.

Just 24 new cars were registered in the north during April 2020, with 144 recorded in May.

The anticipated pent-up demand for new cars, following the easing of lockdown restrictions, was modest, with third quarter sales only six per cent up on the same period in 2019.

But the resurgence of covid appeared to take its toll on consumer confidence over the winter, with the sales figures for December and the fourth quarter the weakest in eight years.

Mr Ramsey said the 36,191 new cars sold was the lowest number since 2002, and almost half the 68,700 sold in 2007.

The Ulster Bank economist said the end of the furlough scheme in the spring would likely lead to soaring levels of unemployment in the summer of 2021.

“While many households have increased their savings over the last nine months, it remains to be seen whether purchasing a new set of wheels is the priority it once was.

“Consumer behaviours have been impacted by the pandemic and this will influence their spending. The new era of working from home has brought about the death of the commute for many.

“While hybrid cars have been all the rage in recent years, the hybrid model of working looks set to become embedded in work-life for years to come.

“2021 will see many workers return to a hybrid model of working split between home and the office.

“Both these scenarios will impact on households’ driving patterns and motoring needs. Equally, public transport may be shunned with consumers preferring to travel in their own private ‘bubbles’.”

The best-selling new cars of 2020 in the north were: Ford Focus (1,025), Volkswagen Golf (1,107), Ford Fiesta (999), Hyundai Tucson (995) and the Nissan Qashqai (795).