New figures from the Society of the Irish Motor Industry (SIMI) show new car registrations were down 10.4% in March.
However, SIMI said registration of new electric cars (battery electric cars) jumped 52.1% compared to the same month last year.
The figures show new car registrations dropped to 15,485 last month, compared to 17,291 in March 2025.
Registrations so far this year are up 0.28% to 64,967 from 64,784 on the same period last year.
In March 3,851 new electric cars were registered up from 2,531 last year, an increase of 52.1%.
So far this year, 14,004 new electric cars have been registered, representing a 40.5% increase compared to the same period in 2025, when 9,964 electric cars were registered.
In the new car market share by engine type, Hybrid (Petrol Electric) continues to lead as the most popular engine type at 27.36%, followed by Electric 21.56%, Petrol 21.24%, Plug-In Hybrid 14.41%, and Diesel 12.92%.
SIMI said the 5 top selling new car brands this year were Toyota, Volkswagon, Hyundi, Skoda, and Kia.
Meanwhile, imported used cars rose 37.7% to 7,970 since last March, while year to date imports are up 39% to 23,646 from 16,987.
Commenting on today's figures Brian Cooke, SIMI Director General, said that following a strong start this year, March new car registrations indicate a softening in demand,
"New car sales for the first quarter of the year are now marginally ahead of Q1 in 2025, with a total of 64,967 new cars registered," said Mr Cooke.
"Despite the slowdown in March, new battery electric car registrations continue to grow, with 3,851 units registered," he said adding that year-to-date BEV registrations reached 14,004 units, which is a 40.5% increase on the same period last year.
"A better guide perhaps is that the BEV market share stands at 21.5%, compared to 18.9% for the full year 2025. The strong growth in EV registrations has been reflected across all counties," he said.
