Electric vehicle sales ‘stuck in the mud’ as industry calls for reversal of subsidy cuts

However, overall car sales for the month increased by 15% compared to a year ago. The market share of purely electric vehicles stands at 13%, the same position as January 2023.

Petrol cars dominate the market with 31.83% of January vehicle sales. Hybrid vehicles at 23.95% surpassed diesel vehicles at 21.77% for the first time. 

While EV sales can be viewed positively, the growth is slightly less than the overall increase in the new car market.  

"This highlights the ongoing challenge as we move away from the early adapter stage into a more mainstream market," said SIMI director general Brian Cooke.

As we move forward, ongoing Government support in terms of incentives and charging infrastructure will play a vital role in ensuring the success of the next phase in the transition to electrification.

There are now more than 70 different electric vehicle models on sale in Ireland and the Government's Climate Action Plan has a target of almost 1m EVs on the road by 2030. Last July the Government cut the maximum SEAI grant for a new electric vehicle from €5,000 to €3,500.

Commenting on SIMI’s sales data, David Savage, vice president of vehicle telemetrics firm Geotab, said sales of electric vehicles were effectively "stuck in the mud", with market share continuing to be pegged at approximately 13% of overall sales. 

"While some might see today’s SIMI data in a positive light, it underlines the huge uphill struggle the Government will have with its 2030 ambition of having 945,000 EVs on Irish roads," he said, adding that cuts to subsidies should be reversed.

The data from SIMI shows light commercial vehicles sales were up 35.3% to 7,500 in January compared to 12 months previously. Sales of heavy goods vehicles increased 7.8% to 458. The number of imported used cars jumped 40.7% in January to 5,326 registrations.