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Car Sales in Australia Maintain Record Levels
Mar 24, 2008

As the economy in Australia is growing impressively, its effect can be seen on the car industry as Australians are increasingly buying new cars, ensuring growth in the industry.
 
Federal Chamber of Automotive Industries (FCAI), Australia, revealed that sales of new cars and trucks touched a record level in January 2008, as reported by daily telegraph.
 
The FCAI sales bulletin, VFACTS (Vendor Field Analytical and Characterization Technologies System), noted a 6.9% hike in retail sales of new cars and trucks in January 2008 compared to the corresponding month last year. The total number of cars and trucks sold in January 2008 was 82,270 Units.
 
The figures mark a continued record growth in the industry. Moreover, more than one million cars were sold last year, an achievement of touching seven-figure milestone in the calendar year.
 
Andrew McKellar, FCAI Chief, said, “One Million new motor vehicles sales in a country of 21 Million people is an impressive achievement by the Australian automotive industry - and ranks as one of the highest rates of new car purchase in the developed world”, as reported by Brisbane Times.
 
Profits and sales are rising on account of rising sale of small cars, SUVs, and Light Commercial Vehicles (LCVs) like utes. Besides, car manufacturers are putting their time, effort and money to lure new customers.
 
The growing economy of Australia has increased the disposable income of its citizens greatly. Increased income and easy availability of car loans at affordable interest rates are encouraging consumers to purchase cars. In fact, these reasons boosted new car sales last year as well as in January this year.
 
Additionally, incentives, like free insurance, free petrol and free tickets to events, have succeeded in enticing buyers to go for brands other than the known ones.
 
A growing labor market and rising asset value in the country have also played their part in the growth of the industry. Consumers are turning away from high priced assets and using their money to buy new cars.
 
According to a Research Analyst at RNCOS, “Australian car industry is experiencing high growth, reflecting the economic prosperity of the country. But the large car segment of the industry is under tough situation because of their declining sale. Thus, the car industry needs to put greater effort into selling large cars to ensure a balanced growth in automobile sales.”

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