New car sales in Northern Ireland fall again in 2019

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New cars in a dealershipImage source, Getty Images

New car sales in Northern Ireland fell by just under 2% in 2019, according to industry figures.

The Society of Motor Manufacturers and Traders (SMMT) said 51,512 new cars were registered, down from 52,533 in 2018.

In the UK as a whole the sales decline was larger, down by almost 2.5%.

The SMMT said factors influencing lower sales included weak consumer confidence and confusion over clean-air legislation.

In Northern Ireland sales of diesel cars were down by 14% from 19,586 to 16,801, while sales of pure electric vehicles more than doubled from 177 to 400.

The two most popular cars were the Ford Fiesta and VW Golf.

The Fiesta was also the best seller for the UK as a whole.

Falling sales

New car sales in Northern Ireland have now fallen for three years in a row.

In the UK as a whole the market peaked in 2016 with 2.69m vehicles sold, but has since been steadily contracting.

The SMMT chief executive, Mike Hawes, said the industry has faced a "perfect storm".

A key factor has been the collapse in demand for diesel-powered cars, which fell by 22% compared with 2018.

Image source, Getty Images

The SMMT said uncertainty over future air quality rules, in particular over potential restrictions on diesel vehicles entering city centres, has left consumers confused.

That, combined with political uncertainty and a general fall in consumer confidence, has meant many potential buyers have decided to keep their old cars rather than investing in new ones.

"You can never put it down to one single factor. It has been a perfect storm over the past few years," said Mr Hawes.

"It's really no surprise the market has been declining. That's why we need a return of confidence and strong economic conditions."

The situation is not expected to improve this year, however, with the SMMT forecasting a further 1.6 % fall in registrations in 2020.