The Federal Chamber of Automotive Industries (FCAI) has released new car sales results for March, which continue to rebound hard from their October 2020 low.
Just over 100,000 new cars were sold in Australia in March, up 22.4% on March 2020 and the strongest March result since 2018.
This growth was driven by sales of SUVs (+32.0%) and Commercial Vehicles (+29.9%), which offset ongoing weak Passenger Vehicle sales (-1.9%).
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The next chart, which plots new car sales on a rolling annual basis shows that sales have rebounded 5.8% from their October 2020 low. However, they remained 21.1% below their February 2018 peak:
FCAI’s Chief Executive Tony Weber was elated with the result, which came despite bottlenecks in global supply chains:
“This is the strongest March result in two years with Private buyers representing the largest proportion of new vehicle purchasers”…
“It is possible that the result could have been even stronger if some brands had not been impacted by delivery constraints in global factory supply chains. It is our expectation that these delivery issues will continue to be resolved during the coming months.”
Tony Weber’s bullishness is justified given new car sales have historically shown a strong correlation with house prices, which are booming.
The huge war-chest of household savings, which is effectively unspent stimulus, should also bolster new car sales through the remainder of 2021.
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