simi donedeal quarter 2 motor industry review presentation 2015

WELCOME

SIMIQ2 Motor Industry ReviewIn association with DoneDeal

4th August 2015

Q2 2015Review

Explained

Damien English, T.D., Minister of State at the Departments of Education and Skills & the Department of Jobs, Enterprise and Innovation with Special Responsibility for Skills, Research and Innovation

Q2 2015Review

Explained

Mark Boggan President of SIMI

Motor Industry Registrations YTD 2015

• New Car Sales up 30%(109,960)

• LCVs up 54%,(18,426)

• HGVs up 9% (1,556)

• Car Hire up 22% (17,633)

152 Registrations for July 2015

• New Car Sales =48%2014 (18,711)V 2015 (27,633)

• LCV Sales= 49%2014 (2,535) V 2015 (3,768)

• HGV = 41%2014 (207) v 2015 (291)

Q2 2015Review

Explained

Cathal Cremen Commercial Manager of DoneDeal’s Motor Section

Motor Industry Review - Q2 2015

Ireland Online

Irish people are buying and selling online in their hundreds of thousands, every day, every hour, from every corner of the country.DoneDeal Secondhand Ireland Report

DoneDeal.ie/motors - Traffic

63M63M 89M89M

Visits - H1 2014 Visits - H1 2015

Page Views - H1 2014Page Views - H1 2015

Mobile

H1 2015 - 195,000 + App (IOS & Android) downloads

43% of all visits to the Motor section are via the Apps.

33% of all Private ads placed via mobile

DoneDeal.ie/motors - Ads Published

H1 2014

H1 2015

Accounts - 1.89MDealers - 1,059

DoneDeal.ie/Motors - Value of Goods Advertised

H1 2014 - €1.995 Billion

H1 2015 - €2.38 Billion

Cars Advertised on DoneDeal & Sold

Ireland’s Largest Motor Website

ComScore, a global media measurement and analytics company’, shows that over a 3 month average in April 2015 DoneDeal reached 25.1% of the total internet audience in Ireland and DoneDealCars had a reach of 12.1%, representing the largest reach for any classified car site in Ireland.

DoneDeal.ie/motors

Thank You!

Q2 2015Review

Explained

Jim PowerReview Author & Economist

The Irish Economy so far in 2015• Recovery gathering momentum• Q1 GDP + 6.5 (YoY)• H1 Retail Sales Volume +8.9% Value +5.5%• H1 Retail sales ex-cars Volume +5.8% Value +2.3%• Merchandise Exports +18.2% (Jan-May)• Live Register -18,800 (H1) Unemployment Rate 9.7%• Consumer confidence at 9-year high• Tax Revenues +11.7%• House price inflation easing: construction activity

improving• GDP growth +5% possible: 4% in 2016

Economic Activity Q1 2015

% QoQ (S/A) % YoY

GDP +1.4% +6.5%

GNP -0.8% +7.3%

Consumption +1.2% +3.8%

Gov. Expenditure -0.4% +5.9%

Investment -3.1% +4.0%

Exports Goods & Services

+2.3% +14.3%

Imports Goods & Services

+0.6% +14.7%

Consumer Confidence

Unemployment Rate

Employment (S/A)

Brent Crude Oil Price

STERLING V EURO

Economic Forecasts

2013 2014 2015f 2016f

GDP 0.2% 4.8% 5.0% 4.0%

GNP 3.2% 5.2% 4.2% 3.5%

Consumption -0.8% 1.1% 2.7% 2.8%

Investment -2.4% 11.3% 16.0% 10.5%

Exports 1.1% 12.6% 11.0% 7.5%

Unemployment 13.1% 11.3% 9.7% 8.5%

Key Economic Risks/Challenges• Greece still very vulnerable• Chinese economy fragile• UK & the EU• Political situation potentially problematical• Irish Water key area of vulnerability for Govt.• Populist politics/instability big risks• Wage pressures• Economy is moving in right direction, but careful

management needed

The Motor Industry H1 2015• New private cars registered +25.4%• New Light Commercial Vehicles +55.7%• New Heavy Goods Vehicles -2.1%• Every county reported good growth in car registrations• Imported private cars -10.8%; sterling strength influential• Costs of motoring : Year to June: Petrol -6.1%, Diesel -

8.9%, Insurance +15.7%, New Car price -2.9%• Petrol -14.5% from peak: Diesel -17% from peak• Making stronger contribution to Exchequer receipts from

new cars €685 m +26.4%• Employment Q1 2015 44,700; +5,600 past year

Monthly Registrations

Cars Licensed

EXCHEQUER REVENUES FROM MOTOR INDUSTRY H1 2015

NEW CAR REGISTRATIONS

(€mln) % GROWTH

VRT 363 +25.4%

VAT 322 +27.6%

Total 685 +26.4%

USED CAR REGISTRATIONS

(€ mln) % GROWTH

VRT 67 -12.7%

VAT 9 -12.5%

Total 76 -12.7%

GRAND TOTAL 761 +21.0%

Employment in Motor Industry

Key Drivers of New Car Market• Personal disposable incomes• Personal Consumption• Interest Rates• Unemployment• Population >15 Years• Credit availability• Car Sales in Previous Years• Tourism• One-off events e.g.: Car Scrappage Scheme, Y2000 etc

Auto Market in 2015 & 2016• 123,000 in 2015; +27%• Consumer confidence strong• Credit availability good• Interest rates to remain very low• Labour market improving• Personal Disposable Incomes rising• Stronger consumer spending• Overseas visitors +12.1% (Jan-May)• Limited fiscal easing in Budget 2015, more in Budget

2016 €1.5 billion?• 145,000 in 2016? +18% # +€183 m VAT/VRT; +2,860 jobs

New Car Registrations

Volume of DoneDeal Motor Ads

DoneDeal Ads Petrol v Diesel

ANY QUESTIONS?

Society of the Irish Motor Industry

MemberSurvey

June 2015

Thank You

• Quarter 2 Motor Industry Review available now at www.simi.ie/quarterlyreport

• July Registration available now at www.beepbeep.ie/stats