Blogs

Home | Blogs
Decline in Sales of Australian New Vehicles
Jun 23, 2008

According to the monthly data from Federal Chamber Automotive Industries (FCAI), sales of new vehicles dropped to about 7.9% in the country during April 2008.

The monthly data from FCAI (Federal Chamber Automotive Industries), Australia shows a drop of about 7.9% in sales of new vehicles during April 2008 in comparison to March 2008, as reported by
THE ECONOMIC TIMES.

According to FCAI monthly data, during April 2008, about 84,296 new trucks and cars were sold, higher from the figure reported in April 2007 but nearly 7,000 down as compared to March 2008. Moreover, sales of cars dropped to nearly 7,224 or 7.9% in April 2008 over March 2008.

High rate of interest on vehicle loans and increasing fuel prices were the reasons behind the drop in sales of vehicles in the country during April 2008. Also, slow economic growth, increasing gas prices, costly travel and slump in home values further discouraged a large number of Australians from purchasing new vehicles, say the industry experts.

The auto industry experts identify some general market uncertainties, such as loans for long time as a significant factor behind the decline in sales of vehicles in Australia. Also, most of the people believe in purchasing new vehicles after the ownership of their old vehicle for some years and this increases threat to sales of vehicles.

Moreover, though in April 2008 sales of new vehicles declined in Australia, the auto industry is likely to flourish in near future. The industry officials said that due to a boom in mining industry, the need for transportation of goods is likely to increase and this raises the demand for four-wheel-drive vehicles and light trucks.

An analyst at
RNCOS, a leading research firm, said, “Though statistics of April 2008 shows a decline in auto industry of Australia but sales of one month do not affect the whole industry. Moreover, the dealers of four-wheel drive vehicles and light trucks are looking forward to the booming Australian mining industry for growth in sales. However, the dealers of two-wheelers and cars can attract more consumers by introducing new, affordable and attractive vehicles in the market.”

Related Market Research Reports:
Brazil Automobile Industry till 2010
Czech Republic Automobile Sector
Global Aerospace Market Analysis