Table of Contents
Executive Summary
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- The market
- COVID-19 to drive further decline in new car registrations in 2020
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- Figure 1: Total new car registrations, NI and RoI, 2015-20
- Market factors
- Car prices rising in the UK/NI
- Diesel surcharge replaced by tax on nitrogen oxide emissions
- RoI abolishes electric-car grant for businesses
- RoI consumers see improvements to personal finances
- Impact of COVID-19 on Automotive Retailing
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- Figure 2: Total new car registrations (adjusted for COVID-19), NI and RoI, 2015-25
- Figure 3: Short, medium and long-term impact on automotive retailing, IoI, April 2020
- Companies, brands and innovations
- The consumer
- Majority of consumers own a car
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- Figure 4: Car ownership, NI and RoI, January 2020
- The lack of a driving licence is a major barrier
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- Figure 5: Reasons why consumers do not currently personally own a car, NI and RoI, January 2020
- Irish consumers bought a car from new over two years ago
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- Figure 6: When consumers bought their car, and if it was new or second-hand, NI and RoI, January 2020
- Consumers turning to friends and family for information about cars
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- Figure 7: Information sources used to find out about cars, NI and RoI, January 2020
- Majority of Irish consumers intend to buy a car
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- Figure 8: Intention to purchase a car in the next three years, NI and RoI, January 2020
- Irish consumers intend to buy a car in the next two years
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- Figure 9: Timescale for purchasing a car in the next three years, NI and RoI, January 2020
- Consumers show a preference for used cars
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- Figure 10: Type of car consumers intend to buy in the next three years, NI and RoI, January 2020
- What we think
Impact of COVID-19 on Automotive Retailing
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- Short, medium and long-term impact on the industry
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- Figure 11: Short, medium and long-term impact on automotive retailing, IoI, April 2020
- Opportunities and Threats
- Focus on ‘clean’ transport provides opportunities for car retailers
- 2008 financial crisis could point the way for car sales post-COVID-19
- Impact on the market
- COVID-19 will see bigger decline in new car sales across Ireland
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- Figure 12: Total new car registrations (adjusted for COVID-19), IoI, NI and RoI, 2015-25
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- Figure 13: Total new car registrations, IoI, NI and RoI, 2009-19
- 2008 financial crisis behaviours could impact car purchase habits
- Vehicle testing suspended in NI
- COVID-19 outbreak impact fuel prices
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- Figure 14: Average road fuel prices for petrol and diesel, per month, NI, January 2020-April 2020
- Figure 15: Average road fuel prices for petrol and diesel, per month, RoI, January 2020-April 2020
- Bank of England cuts UK interest rate to historic low
- How the crisis will affect automotive retailing’s key consumer segments
- Consumers avoiding public transport due to COVID-19 concerns
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- Figure 16: Consumers who have tried to avoid public transport as a result of COVID-19, NI and RoI, April 2020
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- Figure 17: How concerned consumers are about the risk of being exposed to the coronavirus (also known as COVID-19), NI and RoI, April 2020
- Reduced car usage during lockdown has positive impact on environment
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- Figure 18: Environmental and ethical issues most important to consumers, NI and RoI, November 2018
- COVID-19 could car ownership models may change
- How the crisis will affect key consumer segments
- Gen Zers will continue to be priced out of car ownership
- Lower income consumers will have other spending priorities
- How a COVID-19 recession will reshape the industry
- Higher unemployment could impact car purchase intention
- Irish consumers’ confidence impacted by COVID-19
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- Figure 19: How consumers think their personal finances will change over the next 12 months, NI and RoI, January 2020-April 2020
- Financing car purchases will be a challenge post-COVID-19
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- Figure 20: Amount that consumers currently have in savings and investments (excluding the value of main home and any pension savings), NI and RoI, November 2019
- Impact on the Marketing Mix
- Car showrooms will evolve
- Car prices a key factor for struggling consumers in post-COVID-19 world
- Car brands emphasising support offered in communications
- COVID-19: UK & RoI Context
The Market – What You Need to Know
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- Ireland remains a difficult market for new-car dealers
- Automotive sector to be impacted by COVID-19
- Sustainably fuelled cars continue to grow their appeal
- New-car prices falling in RoI, rising in the UK/NI
- Nitrogen oxide tax replaces diesel surcharge in RoI
- RoI consumers see personal finances improve
Market Size and Forecast
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- 2019 sees new car registrations fall again
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- Figure 21: Total new car registrations, IoI, NI and RoI, 2015-25
- Slow growth for new-car market
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- Figure 23: Indexed total new car registrations, NI and RoI, 2015-25
- Used-car imports reach record high in RoI
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- Figure 22: Number of used cars imported, RoI, 2015-19
- Volkswagen remains popular among RoI consumers
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- Figure 23: New car registrations, by top 10 brands of cars, RoI, 2015-19
- UK/NI drivers favour Ford
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- Figure 24: Manufacturer shares of new car registrations, UK (including NI), 2015-19
- Jeeps grow share but hatchbacks remain most popular type of car
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- Figure 25: Top-selling types of cars (body type), RoI, 2015-19
- Consumers opting for greener cars
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- Figure 26: New car registrations, by engine type, RoI, 2015-19
- Figure 27: Sales of new cars, by fuel type, UK (including NI), 2015-19
Market Drivers
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- NI sees new-car prices continue to rise
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- Figure 28: Car price inflation vs new and second-hand cars, UK (including NI), January 2018-January 2020
- Figure 29: Consumer price index vs car prices, RoI, January 2018-January 2020
- Irish consumers opting for grey cars
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- Figure 30: Top five car colours, by market share, UK (including NI), 2019
- Figure 33: Top five car colours, by market share, RoI, 2019
- Fuel prices falling across Ireland
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- Figure 31: Annualised road fuel prices (monthly), for unleaded petrol and diesel, NI, 2015-19
- Figure 32: Annualised road fuel prices (monthly), for unleaded petrol and diesel, RoI, 2015-19
- RoI consumers see finances improve, NI consumers continue to struggle
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- Figure 33: Financial health of Irish consumers, NI and RoI, March 2019-April 2020
- Company car incentive ends for electric cars in RoI
- Electric-car grant to be retained in UK
- Nitrogen oxide emissions tax replaces diesel surcharge
Companies and Brands – What You Need to Know
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- Electric charge points being installed in Tesco carparks
- Subscription services offers new avenue to car ownership
- Coffee waste used to produce parts for Ford cars
Who’s Innovating?
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- ESB charge points to be available in Tesco carparks in RoI
- ‘Subscribe and Drive’ service launched by Nissan
- Toyota building prototype city
- Volkswagen virtual car dealer
- Ford using coffee waste to produce car parts
Competitive Strategies – Key Players
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- Retailers
- Agnew Group
- Key facts
- Recent developments
- Charles Hurst
- Key facts
- Recent developments
- Donnelly Group
- Key facts
- Recent developments
- Motor Service Limited Group
- Key facts
- Recent developments
- Manufacturers
- Audi Ireland
- Key facts
- Recent developments
- BMW Ireland
- Key facts
- Recent developments
- Ford Ireland
- Key facts
- Recent developments
- Mercedes-Benz Ireland
- Key facts
- Recent developments
- Nissan
- Key facts
- Tesla
- Key facts
- Recent developments
- Volkswagen
- Key facts
- Recent developments
The Consumer – What You Need to Know
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- Car ownership remains high
- Friends and family a popular information source about cars
- Car purchase intentions high among Irish consumers
- Most consumers intend to buy a car in the next two years
- Consumers likely to buy second-hand when purchasing a new vehicle
Car Ownership and When Last Car Purchased
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- Most consumers own a car
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- Figure 34: Car ownership, NI and RoI, January 2020
- Car ownership lowest among Gen Zers
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- Figure 35: Car ownership, by age, NI and RoI, January 2020
- NI consumers own new car bought less than two years ago
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- Figure 36: When consumers bought their car, and if it was new or second-hand, NI and RoI, January 2020
- Affluent consumers most likely to have bought a new car recently
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- Figure 37: Consumers who own a car, which they bought new less than two years ago, by social class, NI and RoI, January 2020
- Lack of driving licence inhibiting car ownership
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- Figure 38: Reasons why consumers do not currently personally own a car, NI and RoI, January 2020
Information Sources for Car Information
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- Friends and family the main source of car information
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- Figure 39: Information sources used to find out about cars, NI and RoI, January 2020
- Young consumers turning to social media for information about cars
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- Figure 40: Consumers who use social media to find out information about cars, by age, NI and RoI, January 2020
- Figure 41: Top five social-media platforms used, NI and RoI, March 2019
- Men accessing car information from a range of sources
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- Figure 42: Information sources used to find out about cars, by gender, NI, January 2020
- Figure 43: Information sources used to find out about cars, by gender, RoI, January 2020
Car Purchasing Intentions
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- Most consumers intend to buy a car in the next three years
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- Figure 44: Intention to purchase a car in the next three years, NI and RoI, January 2020
- Younger consumers most likely to purchase a new car
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- Figure 45: Intention to purchase a car in the next three years, by age, NI and RoI, January 2020
- Purchase intention driven by household income
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- Figure 46: Intention to purchase a car in the next three years, by household income, NI, January 2020
- Figure 47: Intention to purchase a car in the next three years, by household income, RoI, January 2020
When Consumers Intend to Buy a Car
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- Consumers interested in buying a car within the next 12 months
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- Figure 48: Timescale for purchasing a car in the next three years, NI and RoI, January 2020
- Men intending to buy a car in the next six months
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- Figure 49: Timescale for purchasing a car in the next three years, NI, January 2020
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- Figure 50: Timescale for purchasing a car in the next three years, RoI, January 2020
Type of Car Consumers Intend to Buy
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- Consumers most likely to buy second-hand cars
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- Figure 51: Type of car consumers intend to buy in the next three years, NI and RoI, January 2020
- Second-hand cars popular among Irish women
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- Figure 52: Consumers who intend to buy a second-hand car in the next three years, by gender, NI and RoI, January 2020
- Full-time employees interested in buying new car
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- Figure 53: Consumers who intend to buy a new car in the next three years, by work status, NI and RoI, January 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Market size rationale
- Generational cohort definitions
- Abbreviations
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