According to the latest Society of the Irish Motor Industry (SIMI) report, the Irish motor industry has kicked off 2025 with positive momentum. New car registrations are up, EV sales are breaking records, and used car imports are rising, creating exciting opportunities for dealerships and finance brokers. But with shifting consumer trends, declining LCV sales, and a growing reliance on finance, how can industry players make the most of the year ahead?
Let’s dive into the numbers and what they mean for the market.
Electric Vehicles (EVs) Are Gaining Ground
LCV Sales Are Struggling – What’s Next?
New Car Sales Are On The Rise
It’s been a strong start to the year for new car sales in Ireland, with 33,521 new cars registered in January 2025, a 7% increase on January 2024. This upward trend signals renewed consumer confidence and a continued demand for petrol and hybrid models, which still dominate the market.
The top-selling car in January was the Hyundai Tucson, followed by the Toyota Yaris Cross and Kia Sportage. These compact SUVs remain firm favourites among Irish buyers, balancing affordability, practicality, and strong resale value.
🚗 Finance plays a crucial role in these sales. At LM Operations, we provide tailored car finance solutions to help dealerships approve more customers. Speak to us today to enhance your finance offerings.
Electric Vehicles (EVs) Are Gaining Ground
EVs had their biggest month ever in Ireland, with 4,925 new electric vehicles registered in January, a 20% increase year-on-year. This surge highlights the growing acceptance of electric mobility, driven by government incentives and an expanding selection of models.
However, despite this impressive growth, the EV market share (14.69%) still hasn’t returned to its 2023 peak (19%). The challenge? Affordability and charging infrastructure. While private buyers benefit from SEAI grants, many potential EV customers still hold back due to the higher upfront costs and concerns over long-term value retention.
Used Car Imports Are Climbing
With affordability remaining a key concern for many buyers, used car imports rose by 5.2% in January 2025, continuing a trend of Irish consumers looking overseas for better value.
This increase in imported stock presents both challenges and opportunities:
- Competition for well-priced used cars is rising, making it crucial for dealers to source high-demand models efficiently.
- The quality of imports varies, so transparency in history, mileage, and finance options will be key to winning customer trust.
- Finance availability on imports: some lenders are more hesitant to lend on non-Irish stock, so partnering with the right finance provider can make or break a deal.
LCV Sales Are Struggling – What’s Next?
One of the more surprising trends from SIMI’s report is the 16% drop in Light Commercial Vehicle (LCV) sales, with just 6,270 units registered in January 2025. This dip suggests businesses may be holding back on fleet renewals due to economic uncertainty or shifting towards second-hand vans instead of new models.
On the other hand, Heavy Goods Vehicles (HGVs) saw an 8% increase, which shows continued investment in the logistics and transport sectors.
For dealerships that specialise in commercial vehicles, the focus should be on:
✅ Offering competitive financing for businesses hesitant to buy new.
✅ Exploring alternative van stock, including used LCVs with strong resale value.
✅ Keeping a close eye on government incentives and tax benefits for commercial buyers.
What This Means For Car Dealerships & Finance Brokers
So, how can dealerships and finance providers make the most of these trends?
- Double down on finance solutions: As new car prices rise and buyers seek flexibility, finance options are more crucial than ever.
- Optimise stock for demand: With compact SUVs leading the way, ensuring the right models are available, whether new or used, will be key to maximising sales.
- Support EV buyers: While EV demand is growing, affordability is still a concern. Finance solutions that reduce the upfront cost of electric vehicles will significantly expand EV adoption.
- Adapt to shifting LCV demand – With LCV sales down, dealers should focus on used stock and provide financing tailored to businesses that may be delaying new purchases.
The Right Finance Partner Can Make the Difference
The Irish car market is evolving rapidly, and having the right finance partner can help dealerships reach a broader customer base and close more deals.
At LM Operations, we provide flexible, tailored car finance solutions that help dealerships offer finance to more customers, including non-prime buyers.
Want to increase sales in 2025? Contact LM Operations today to learn how we can help you drive your dealership’s success.