Business

SMMT: 30,000 fewer new cars sold in Northern Ireland over last two years

Just 35,352 new cars were sold in Northern Ireland between January and November, 14,105 fewer than in the same period in 2019.
Just 35,352 new cars were sold in Northern Ireland between January and November, 14,105 fewer than in the same period in 2019. Just 35,352 new cars were sold in Northern Ireland between January and November, 14,105 fewer than in the same period in 2019.

THE north’s new car industry recorded its worst November in a decade and is on course for the second worst year on record, with supply chain disruption stalling the post-lockdown recovery.

The combination of Covid-19 last year and a global shortage of semi-conductor chips this year, has resulted in around 30,000 fewer new cars on the road.

Just 2,524 new cars were registered in Northern last month, 14.2 per cent down on last year and 20 per cent below 2019.

According to the Society of Motor Manufacturers and Traders (SMMT), just 35,352 new cars were sold in Northern Ireland in the January to November period, only 2.5 per cent higher than 2020, where dealers were forced into temporary closure and reopened under strict restrictions.

Between 2006 and 2019, an average year for the north’s car industry involved just under 51,000 new motors rolling out of forecourts.

Ulster Bank economist Richard Ramsey said the drop in new car sales over the last two years equates to 30,000 fewer vehicles than if 2019 sales levels had been maintained.

“With just one month remaining, 2021 looks set to exceed last year’s record low but it will still go down as the second worst year for car sales on record,” he said.

“The reduced supply of new stock flowing into the used car market will continue to push up prices of second-hand cars.”

The economist said new car activity is set to pick up in 2022, but said: “To what degree is dependent upon supply chains.

“Traditionally new car sales were viewed as a leading indicator of consumer confidence.

“As in 2021, new car registrations will act as a barometer for supply-chain disruption in 2022/23.

“A meaningful pick-up in new car sales will suggest supplier delivery times are shortening and the shortages in car components, such as semi-conductors, are easing.”