The Republic of Ireland is seeing accelerating imports of older, more polluting diesel cars as buyers cash in on the weak pound.
Speaking at the Motor Trader Scotland Summit 2018 Alan Nolan (pictured), direct general of the Society of the Irish Motor Industry (SIMI), said a buoyant economy in Ireland and weak sterling was driving imports by dealers.
“The Irish economy is incredibly strong at the moment, showing growth in all areas with technical full employment sometime next year. It is the fastest growing economy in Europe.”
But, new car sales have fallen dramatically to recession levels with the market undercut by a wave of used imports.
“In 2015 and 2016 moving out of recession we would have predicted new car sales of 160,000 or 170,000 and instead it has fallen back to 110,00, which is recession-level sales.
“If you look at the imports they have gone from 48,000 in 2015 to maybe 110,000 this year so used car imports will be very close to the new car market,” said Nolan.
“But it is not new and nearly new cars that are competing in the Irish car market, these are your diesels which are subsidised by very low sterling coming into the market place. The impact that is has is to drive down trade in prices for customers. And that is going to continue.
According to Motorcheck.ie figures 78% of car imports coming into Ireland are diesel and 60% are four or more years old.
“From our members’ point of view can someone not save us from this problem? ‘My God we have 100,000, 110,000, 120,000 horrible, smoky, old, diesel cars coming in from the UK. Can something not be done about it?’”
“This is the world, this is the UK being a full member of the EU while all this is going on with free movement of goods and trade.
“And guess what we and the Irish motor industry will not be the first people to suggest a border or some sort of tariff or other thing in free movement of trade, that is the last thing we would want.
“The issue for us is planning our business and knowing this is going to be the case. It is going to be a difficult few years, a time to be cautious and risk averse but there is still opportunity for people to make
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