Buyers already choosing more economical cars

16 May 2006

Buyers already choosing more economical cars without incentives, says new vehicle industry

According to the Motor Industry Association, the suggestion that incentives be applied to tempt people to buy more economical cars is too late as the market has already moved.

“Car buyers are astute,” said Motor Industry Association CEO Perry Kerr. “The promise of lower fuel bills is sufficient incentive on its own for buyers to choose the most economical vehicle which meets their needs, and they are doing just that.”

Sales of micro, light and small cars have grown by almost 60% since 2000, and there has been a steady decline in the market share of large cars over that period. In 2003, large cars represented 25.8% of the market – two years later this had dropped to 18.4% and there was a further drop to 16.7% year to date April 2006. For the month of April, large cars reached a record low of just 14.2%.

By contrast, micro, light and small cars went from 32.8% of the market in 2003, to 37.4% in 2005, reaching 39.8% for the first four months of 2006 and 41.2% in April.

“The tend shows no sign of abating and clearly incentives are not required” said Mr Kerr.
“Besides, the most popular fuel-efficient cars already have waiting lists, so any incentives would only exacerbate that situation.”

“This marked change in new car purchases is very encouraging both in terms of reducing New,” Zealand’s oil imports and in meeting our Kyoto obligations” he concluded.

ENDS

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