New car sales in Northern Ireland ramped up once again last month as the supply logjam caused by the semiconductor shortage continued to ease.
The Society of Motor Manufacturers and Traders (SMMT) said a total of 3,432 new cars were registered in the province last month, a 6.8% jump on the same time last year. The trend was replicated across the UK with sales climbing by 8% in Wales, 11% in England and over 21% in Scotland.
Behind much of the improved performance is the fact lead times on new cars have shortened considerably. A slowdown in the global production of semi-conductors - a vital element in modern car manufacture – as a result of the Covid-19 pandemic meant new car buyers were having to wait months and in some cases years for delivery of their new vehicle, a situation which was reflected in relatively weak new car registrations in recent months.
However, with manufacturers ramping up production of semi-conductors, car registrations have grown with the year-to-date total for Northern Ireland up 17.4% at 14,272. Of the new cars sold so far this year, the Hyundai Tucson was the most popular, followed by the Ford Puma and Ford Fiesta.
The data is usually a reliable indication of consumer confidence, as buyers will shell out for such a big ticket item if they are confident about their finances. However, economists have suggested the uptick in sales reflects past confidence when orders were placed and doesn’t accurately reflect the current mood.
Still strong inflation, rising interest rates and worries over the health of the local and global economy have dented sentiment and are expected to lead to a slowdown in orders in the near future. However, early signs that inflation may be waning in light of a slide in energy prices do offer hope for the car retail sector.
While optimism may be emerging and year-on-year comparisons flattering, new car registrations in Northern Ireland have some way to go to recovery to the glory years just prior to the financial crisis. Then, in 2007, some 70,000 new cars were registered in Northern Ireland, a figure which compares to the 38,000 notched up last year.
