July New Car Registrations Fall 6% Amidst Turbulence in Electric Vehicle Market
Turbulence in Electric Vehicle Market and Heightened Competition
The Irish motor industry faced a challenging July as new car registrations fell by nearly 6% compared to the same month last year. A total of 25,736 new cars were registered, down from 27,336 in July 2023, marking a notable decline in a traditionally strong period for the sector due to the introduction of new 242 licence plates.
The largest decrease was observed in the electric vehicle segment, which saw a dramatic 24.7% drop year-on-year, with just 3,147 new electric cars registered. This decline is attributed to a combination of reduced incentives for electric cars and looming changes in Benefit-In-Kind (BIK) taxes set to rise significantly in 2025.
Petrol vehicles continue to dominate the market, accounting for nearly 32% of all new registrations, while diesel vehicles hold a 23% share. Petrol-hybrid cars make up 20.7% of registrations, and fully electric cars represent 13.3%.
Brian Cooke, Director General of the Society of the Irish Motor Industry (SIMI), highlighted the ongoing trend of decreasing sales and stressed the need for immediate government intervention in the upcoming Budget to rejuvenate the electric car market. “July’s figures are reflective of a broader trend that requires decisive actions to reverse the current decline and boost Ireland’s electric vehicle momentum,” Cooke said.
The current market turbulence is mirrored by global automotive giants, with Volkswagen, Toyota, and BMW all reporting mixed financial results. Volkswagen revealed a 2.5% drop in earnings before interest and taxes for the second quarter, amounting to €5.46 billion. The company plans significant cost-cutting measures as it revamps its lineup to compete with Tesla and BYD.
Toyota, the world’s leading automaker, posted a 17% increase in operating profit for the April to June period, totaling 1.3 trillion yen (€8 billion). However, the company’s shares fell by 8% as investors reacted to the weakest growth in over 18 months.
BMW’s results were less favorable, with a 4% decline in China sales and a drop in EBIT margin from 9.2% to 8.4% in its automotive segment. The company faces mounting competition and weaker demand, particularly in the Chinese market.
As the automotive industry navigates these turbulent waters, stakeholders and policymakers will need to address these challenges head-on to foster stability and growth in the sector.
Additional Reporting by Reuters
