High density living driving fall in new car sales?

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New car sales have now declined for 17 months, longer than a 15-month decline that occurred during the global financial crisis (GFC):

Now, a new report from KordaMentha indicates that car ownership is viewed as ‘more optional’ than in the past. Cars are not well suited to high-density living in Australia’s congested cities while young people are less interested in car ownership or even acquiring a licence. Other factors behind the decline in car sales include the growing popularity of food delivery and car subscription services. From The AFR:

[The fall in new car sales] comes at a time when Australia’s population increased by 405,000 in 2018, with about 250,000 of that annual increase stemming from migration, increasing the pool of potential buyers. The population has risen by almost 600,000 since the new vehicle decline began in April 2018.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.