Resilient Vehicle Demand in the face of COVID Uncertainty
(11 August 2021 – Australia) New vehicle demand has increased robustly in Australia through July 2021 despite COVID-19 border closures, lock downs and ongoing supply chain disruptions.
A total of 84,161 vehicles were sold across Australia in July 2021 compared to 72,505 in July 2020, representing an increase of 16.1 percent year-on-year. Queensland, Victoria, WA and NT all recorded growth greater than 20 percent during the corresponding month last year, while NSW and the ACT recorded a decline.
In NSW, Electric Vehicle (EV) sales increased by 260 percent and Plug-in Hybrid Vehicles (PHEV) rose by 84.9 per cent. In Victoria, EV sales were up 191.1 percent and PHEV increased 161.3 percent compared with July 2020.
By make, Toyota held its position as the market leader in July, selling a total of 17,643 vehicles with its Hilux the highest selling vehicle (4,610), followed by the Ford Ranger (4,064), the Toyota Corolla (2,535) and Isuzu Ute D-Max (2,427). Mazda led the rest of the brands with 8,919 vehicles sold. Ford (5,569), Mitsubishi (5,302) and Kia (5,202) followed.
East & Partners Asset & Equipment Finance program additionally outlines CFOs and corporate treasurers vehicle sourcing preferences, proportion of enterprises using equipment finance for vehicles, proportion engaging with secondary equipment finance providers and primary car financing relationship preferences based on direct interviews with 1,300 enterprises.
Private question submissions for the 2022 program closes 10 September for reporting in early December.
“Despite the impacts of lockdowns on major retail locations, the market remained strong. The growth of 16.1 percent shows the underlying strength, confidence and resilience in the market in spite of the challenges being presented due to lockdowns and ongoing delivery issues caused by microprocessor shortages and shipping delays” commented Federal Chamber of Automotive Industries CEO, Tony Weber.
“The Light Commercial segment increased by 40.9 percent on July last year while SUV sales are up by 15 percent. We are also seeing the trend of restocking in the rental segment, with growth of 231.4 percent reflecting the increasing demand for local tourism and travel. Also significant this month is the strong demand for EV and PHEV in Victoria and NSW where the State Governments have introduced a road user charge offset by consumer grants and continuing infrastructure investment” Weber added.
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