Donnelly Group is adding  Volkswagen Passenger Cars, Skoda and Cupra to the Dungannon site in 2025 facilitated by a £7m investment in facilities.

In addition, Volkswagen Passenger Cars and Skoda will open in Ballymena, giving Donnelly Group responsibility for all VW Group brands outside of Belfast.

The moves were flagged up in accounts posted at Companies House which saw the Northern Ireland dealer deliver pre-tax profits in 2024 decline 3.7% to £4.83m on turnover up 16.5% to £330m.

The group said it was happy with the result given the challenging market and economic environment. New vehicle sales increased by 22.2% and used vehicle sales by 6% in unit terms.

The passenger car market in NI grew by 8% in 2024, driven by a 23% increase in the Motability sector which Donnelly said now accounts for 47% of all new vehicle registrations.

In contrast the retail market declined year on year by (3.3%) and remains (25.6%) behind pre-covid levels.

Donnely said the Zero Emission Vehicle (ZEV) mandate was having a damping impact on the new vehicle market, with customer demand lagging targets.

“Without further consumer stimulus and improvements in charging infrastructure, the ZEV mandate will continue to restrict retail market growth,” it said in accounts filed at Companies House.

On the outlook Donnelly said: “The economic environment remains challenging, and Inflationary pressures from recently announced government taxation measures require improvements in cost control and operational efficiency to mitigate impact.”