Cost-of-living pressures have failed to dampen Australia’s love affair with the car, with sales reaching new heights in 2023 despite successive interest rate hikes.
The Federal Chamber of Automotive Industries on Thursday revealed Australians bought 1,216,780 new vehicles last year — eclipsing the previous annual record set in 2017 by more than 27,000.
The result is the culmination of a three-year comeback after COVID-19 decimated supply chains and caused new vehicle sales to slip below one million in 2020.
“This extraordinary result is a testament to the adaptability and resilience of both industry players and consumers alike,” the chamber’s chief executive Tony Weber said.
“Despite the supply chain disruptions faced in recent times, consumers now have greater access to a broad range of choices, fostering increased accessibility in the market.”
But as consumers expend pent-up demand fuelled by COVID-era supply shortages, the industry is readying itself for a 2024 slowdown.
Economists predict household purchasing power to diminish further as the effects of 13 interest rate rises since May 2022 and lingering high inflation continue to eat into record savings accumulated during the pandemic.
“Cost-of-living pressures and increased interest rates will impact the market and we anticipate a challenging 2024,” Mr Weber said.
But he was optimistic the federal government’s proposed fuel efficiency standard reforms would lead to emission reductions while enabling Australian consumers to drive the vehicles they need and want.
Electric vehicle sales continued to power ahead in 2023. More than 87,000 EVs were sold last year, accounting for 7.2 per cent of the market compared to 3.1 per cent in 2022.
Utes and SUVs dominated the market for another year, accounting for almost 80 per cent of all sales and all of the top 10 most popular models.
(thenewdaily.com.au)
