Business

Car dealers record second month of a post-lockdown bounce in sales

BMW entered the top ten of the north's best-selling cars during August with its new 1 Series.
BMW entered the top ten of the north's best-selling cars during August with its new 1 Series. BMW entered the top ten of the north's best-selling cars during August with its new 1 Series.

CAR dealers in the north enjoyed a second successive month of a post-lockdown bounce in sales, but the local industry remains on course for the worst year on record.

A total of 3,618 new cars were registered in Northern Ireland in August, according to the Society of Motor Manufacturers and Traders (SMMT), 6.6 per cent more than the same month last year.

The previous month saw the motor trade record its best July since 2007, with the 4,398 new motors sold representing a 17 per cent improvement on July 2019.

The evident pent-up demand during the coronavirus lockdown reversed six of the worst sales months on record through the first half of 2020, including the pre-lockdown period.

The year-on-year improvement in monthly sales over July and August have helped narrow the chasm opened by Covid-19 between the local industry’s performance in 2019 and 2020.

But sales still remain 39 per cent behind 2019 after eight months, albeit the gap has narrowed from 50.8 per cent in June.

Ulster Bank’s chief economist Richard Ramsey said all signs point to 2020 remaining an “annus horribilis” for car showrooms.

He said even if dealers manage to match last year’s monthly figures for the remaining four months of the year, it would result in 36,700 cars sold, 29 per cent down on 2019.

That annual sales figure would leave the industry 10,500 below the previous low of 47,229 during 2011.

“During the last recession new car sales in Northern Ireland posted an annual decline of 17.5 per cent in 2008,” said Mr Ramsey. “They eventually fell almost one-third (-31.3 per cent) between 2007 and 2011.”

According to the SMMT data, the Hyundai Tucson (137) and the Ford Focus (119) swapped places from July at the top of the table for the north’s best-selling new car. The Ford Kuga (107), Volkswagen Golf (107) and Renault Captur (103) completed the top five.

Ford’s Puma (97), Volkswagen’s Tiguan (84), Ford’s Fiesta (77) and Hyundai’s Kona (75) also fared well.

BMW made an unusual appearance in the top ten courtesy of its new 1 Series, with 74 new versions rolling off forecourts in August.

The Ford Focus (681) and Fiesta (643) remain the biggest sellers of 2020, closely followed by the Hyundai Tucson (623).