Brexit has impacted the number of new vehicles available in certain parts of the UK, and forced some motorists to pay more tax, according to experts.

Northern Ireland motorists will face restricted vehicle choices and increased road tax from January 2026 under post-Brexit trading arrangements that require all new cars to have EU type approval.

The new rules, which emerged during a Stormont economy committee hearing, mean vehicles approved solely under Great Britain standards will no longer be eligible for registration in Northern Ireland.

Representatives from the region's leading dealerships warned lawmakers that the changes would result in "a restricted offering, restricted price list and potentially higher taxation" for consumers.

Experts have warned that drivers may face increased vehicle tax bills

The regulations apply only to new vehicles, with used cars remaining unaffected by the type approval requirements.

Major dealerships, including Charles Hurst, Agnews and the Donnelly Group, have warned of potential job losses across Northern Ireland's automotive sector.

This could have devastating consequences given that the sector currently employs approximately 17,500 workers, the BBC reported.

The companies presented their concerns to Stormont, outlining the significant disruption facing the industry when the new regulations take effect.

Dealers claimed that motorists in Northern Ireland may face higher costs than a driver in Birmingham

Sue Robinson, chief executive of the National Franchised Dealers Association, confirmed that dealers had warned of "very, very significant" consequences for local businesses and employment during the session.

She stated that the NFDA would continue lobbying the Government on behalf of Northern Ireland dealers' concerns about being "caught between two governing bodies".

Dave Sheeran from the Donnelly Group described the situation as "an unintended pain of Brexit," warning that consumers would face differential taxation across the UK.

"Somebody buying a car in Belfast will face a higher tax than someone buying the same new car in Birmingham," he told the committee.

The disparity is particularly pronounced for plug-in hybrid vehicles, which will be subject to different carbon dioxide emissions regulations in Northern Ireland compared to Great Britain.

Sheeran explained that "not everything being offered in GB will be able to be sold in Northern Ireland because of a divergence in regulations with the EU".

Jeff McCartney from Charles Hurst highlighted the paradoxical nature of the new arrangements during the committee meeting.

He told MLAs: "The irony is customers will be able to go to GB and buy a new car but dealers in Northern Ireland will no longer be able to source the vehicles for them."

The Government is being urged to act before the January 2026 deadline

McCartney urged committee members to support calls for the UK Government to permit Northern Ireland dealers to continue selling GB type-approved new vehicles beyond the January 2026 deadline.

The NFDA confirmed that dealers had stressed the urgent need to restore access to the GB market, as they "currently cannot access any GB stock".

It comes as the boss of a major car brand admitted the company does not have anything left to sell.