The number of new cars registered last year was down 25% according to figures released by the Society of the Irish Motor Industry.
There were 88,324 cars registered in 2020.
More than 43% of new cars were diesel, almost 37% were petrol.
Almost 12% were hybrid and more than 4.5% were electric. A total of 4,013 electric cars were sold.
Volkswagen was the best-selling car brand.
The Toyota Corolla was the best-selling car model of the year.
Top Selling Car Brands 2020
Top car model's 2020
1. Toyota Corolla
2. Hyundai Tucson
3. Volkswagen Tiguan
4. Ford Focus
5. Hyundai Kona
There was a 30% drop in the number of imported used cars last year.
Used car imports have been on the increase in recent years as consumers shop around for value, but Brexit will further impact the importation of used cars from the UK with customs declarations and additional taxes applying.
The Society of the Irish Motor Industry has said that the implementation of Level 5 restrictions will further impact sales this year.
However, SIMI Director General Brian Cooke said that it is vital that the current restrictions succeed so that business and society can return to normality.
He said that car dealerships remain open for business operating click and collect services. Repair and servicing is also continuing.