New Car market continues to surge

Media Release

For Immediate Release
4 October 2002

New Car market continues to surge

The new car market moved up a step in September from its already buoyant level to reach 6014 units for the month, an increase of 12.8% over August and an impressive 23.4% gain on September 2001. It marked the eleventh successive month that new car sales had exceeded the figure for the same month the previous year, and there is no doubt that the full year new car market in 2002 is going to exceed 60,000 units for the first time since 1996.

“There is a new confidence amongst private buyers of new cars,’” said Perry Kerr, Chief Executive Officer of the Motor Industry Association. “We have been saying for some time now that the tariff-free environment would put an end to uncertainty about likely depreciation levels for new cars, and this is proving to be the case. This, together with strong rental car sales arising from continuing confidence in the tourism sector, is giving the new car market a welcome boost.”

The MIA sees the situation as a long term trend. “The true level of the new car market, based on the historical relativity to the Australian market, is about 110,000 units per year,” said Mr. Kerr. “It was only the advent of used imports which cut it to around half that, but now that we have a stable tariff regime we are seeing the market claw its way back as the price difference between the new and used car markets has closed.”

‘When all costs of ownership are taken into account, the case for owning a fully-equipped, safe, reliable, enjoyable to drive new car which uses less fuel and is easier on the environment is more compelling than ever, and buyers are clearly starting to appreciate this,” Mr. Kerr concluded.

ENDS

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