The Federal Chamber of Automotive Industries (FCAI) has released new car sales data for April, with sales nationally down 12.2% from the same month last year:
The annual fall was broad-based, with PMVs (-14.5%), SUV’s (-13.8%) and commercial vehicles (-7.4%) all falling.
There are 753 words left in this subscriber-only article.
According to Tony Weber, CEO of FCAI, global supply chain issues continue to stymie sales:
“We know this is not a reflection on the demand for new vehicles in the marketplace. This is a reflection on the global automotive industry’s ability to supply vehicles to not only the Australian market, but all markets throughout the world.
“Automotive manufacturers continue to suffer from a shortage of microprocessor units which is impacting their ability to ramp up production to pre-pandemic levels. Covid-19 continues to impact manufacturing and supply, particularly where factories have been forced to close and shipping operations are yet to fully recover. This is being reflected in the extended delivery times for new vehicles.”
Rising interest rates should stifle new car demand going forward as households are forced to spend more of their disposable income on mortgage repayments.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also Chief Economist and co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
Latest posts by Unconventional Economist (see all)
