Figures from the motor industry show that the number of new cars registered in 2020 fell by 25% compared with 2019, to 88,324.

The Society of the Irish Motor Industry (SIMI) said 2020 proved to be a “very difficult year” for the industry, as COVID-19 restrictions added to its problems.

Registrations of new light commercial vehicles dropped by just over 14%, while the number of new heavy commercial vehicles sold slumped by 22%.

79,969 used cars were imported, a fall of almost 30% compared with 2019.

Difficult January ahead

4,013 new electric cars were registered in 2020, up from 3,444 in 2019. Diesel remains the most popular engine type, used in just over 43% of vehicles, but hybrid and electric gained market share, climbing to 12% and 4.5% respectively.

"New car sales, already hampered in recent years due to Brexit, were down a further 25% due to the COVID-19 pandemic, and are now at recession levels,” said SIMI director general Brian Cooke.

With January a key month for new car sales, Mr Cooke said the dramatic deterioration in the public-health situation over the last few weeks and the implementation of new restrictions would make it another difficult period for the sector.

Car dealerships remain open for service, repair and testing, which are categorised as essential services.