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The Irish car sales growth rate for 2021

The Irish car sales growth rate for 2021

The Irish economy grew by just 1.7pc last year, but the Irish car industry saw its strongest year-on-year growth in more than 10 years.

The Irish car market is the world’s fourth-largest, accounting for roughly 14pc of total global car sales.

It is the fastest-growing industry in the world, according to the International Federation of the Car Manufacturers and Traders.

Its growth was underpinned by rising car-buying confidence.

In 2017, the number of cars bought fell by 14pc to nearly 2.3m.

The industry also saw an increase in the number sold, which rose by 8pc to more than 2.6m units.

A new breed of luxury vehicles, including SUVs, is the latest addition to the car-sharing fleet.

This trend is fuelled by the rise in the use of ride-sharing services such as Uber, and the growing popularity of the autonomous car.

There were 5.3 million vehicles in the market in the first half of 2021, up from 4.3 m in 2020, according TOI.

According to data compiled by the Insurance Information Institute, Irish car ownership is up by 2.5pc year-over-year to 1.9m.

In contrast, car-sales in China, the United States and Germany rose by 2pc each year between the same period.

But as more of the country’s cars are being driven, there is a growing concern over the future of the industry.

The National Insurance Institute last year warned that car sales were “in freefall” and predicted a “significant reduction” in demand.

In its 2017 report, the Institute said that demand was falling for cars due to the increase in passenger car numbers, but also the loss of jobs in the industry due to automation.

“This trend may continue into the 2030s as the economy slows down and as car ownership declines,” it warned.

While the sector is expected to grow at its strongest pace in 2020 for at least the next decade, there are fears that the recovery in demand will slow.

Last year, the Irish government was forced to cut its budget by nearly €400m in a bid to address the countrys high car-related debt.

Fianna Fáil, which is in power, has pledged to spend €10bn over the next three years on a “plan B” to stem the recession.

However, the party is yet to release its 2018-19 economic forecast, and while some believe that the Irish economy will remain in recession through the 2020s, the country could be facing a further downturn.

Despite the economic downturn, the Government is currently forecasting growth of 2pc for 2021.

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