NI car sales fall 9% in August says motor trade body

Car sales are seen as a useful measure of the economy

New car sales in Northern Ireland fell by more than 9% in August compared to the same month in 2016, according to industry figures.

The data from the Society of Motor Manufacturers and Traders (SMMT) shows 3,647 new cars were registered in August.

A total of 41,891 new cars have been sold in Northern Ireland so far this year, down more than 5% on last year.

The best selling cars are the Volkswagen Golf and Hyundai Tucson.

Car sales are seen as a useful measure of the consumer economy in Northern Ireland as there are no general retail sales figures.

In the UK as a whole sales of new cars fell for the fifth month in row during August, with demand for diesel cars plunging more than a fifth.

The figure was down 6.4% from August last year, while diesel sales - which have been hit by worries over air quality - fell by 21.3%.

Several carmakers have launched trade-in and scrappage deals for UK buyers.

Volkswagen, Toyota, Ford, Vauxhall and Renault are among a number of major carmakers that have launched schemes recently, which could boost sales during September.

SMMT chief executive Mike Hawes said: "August is typically a quiet month for the new car market as consumers and businesses delay purchases until the arrival of the new number plates in September."

The figure was 30% lower than the sales recorded in 2007, when Northern Ireland was at the peak of a housing boom that saw equity withdrawal used to fund new car buying.

The Ulster Bank's chief economist, Richard Ramsey, said there was little scope for optimism in the industry.

"While showrooms may be hoping for an Indian summer in new car sales, this autumn is likely to see the recent trends continue," he said.

"Consumers are experiencing a squeeze on their living standards with rising fuel and food prices."