Southern swing, changing market trends in Ireland - Derry Journal Motoring with Jim McCauley

Figures from Cartell show that over the past decade, Japanese imports have increased nearly tenfold, from 2,321 in 2014 to 21,716 in 2023. In contrast, UK imports have declined from 44,939 in 2014 to 14,904 in 2023.

UK imports peaked in 2019 but began to decline rapidly the following year due to Brexit. Between 2020 and 2022, Japanese imports nearly doubled year on year, from 4,575 in 2020 to 9,805 in 2021, rising to 18,524 in 2022. By 2023 there were twice as many used Japanese imports as those coming from the UK, a trend that has continued in 2024.

Since the UK’s exit from the European Union, Irish buyers have faced increased costs and paperwork when importing vehicles from the UK, whereas favourable depreciation rates for cars in Japan mean high quality vehicles available at lower rates. Japanese sourced vehicles are also seen as reliable and well-maintained, providing good value for money.

Cartell data reveals that European models still reign supreme in the imports from Japan. Volkswagen is the most popular car maker imported from Japan, with the Golf and Polo taking the top spots. Audi and the A3 are the next most imported make and model. Despite the popularity of Japanese-made European models, brands like Toyota, Honda, and Nissan are also gradually increasing in popularity.

According to Cartell, most Japanese cars being imported are aged between 6-10 years, with 73% having petrol engines so far in 2024. In comparison, almost 23% are petrol-electric hybrids.

The increase in the used car market is confirmed in the latest figures from the Society of the Irish Motor Industry (SIMI) which show that imported used cars have seen a 32.2% (5,828) rise in July 2024, when compared to July 2023 (4,408). Year to date imports are up 26.4% (37,199) on 2023 (29,433).

However, new car registrations for July were down 5.9% at 25,726 when compared to the 27,336 registrations in July 2023. So far this year, numbers are down 0.3% (104,652) on the same period last year (104,938). In the new car market share by engine type for 2024, Petrol cars lead the new car market at 32% followed by Diesel at 23%, then Hybrid (Petrol Electric) at 21%, Electric at 13%, and Plug-in Electric Hybrid at 10%. So far this year, 13,885 new electric cars have been registered representing a 25% decrease compared to the same period in 2023 when 18,484 electric cars were registered.

For those opting to purchase in the used car market, outstanding finance is a concern with more cars being purchased through a loan or PCP deal. Cartell has estimated that two-year-old, second-hand cars have a 35 per cent chance of having finance owing, while the rate for three-year-old cars is 32 per cent. That’s a one-in-three chance that any second-hand car offered for sale is still, technically, the property of a finance provider, as ownership does not transfer until the final payment has been made.