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NEWS
Affordability the key to car sales boom
Toyota says new vehicles have never been more affordable, thanks to increased competition and better wagesToyota has attributed Australia’s booming new-car market to near-record vehicle affordability, thanks to higher wages, lower import tariffs, improved technology and red-hot competition between manufacturers.
The Australian motor industry, which last year increased by more than 10 per cent to a new record of 1,112,032 new vehicles, has outstripped population growth by almost three times in the past 20 years.
Toyota says that’s because cars, SUVs and commercials are significantly more affordable now than they have been at any time since the mid-1970s.
According to Australia’s number-one automotive brand, total full-time average weekly earnings have more than doubled since 1991 while interest rates are much lower.
In 1991 – the first of 16 years Toyota has claimed Australian market leadership – it took 40 weeks of average weekly earnings to buy a six-cylinder family car, while today it takes just 30 weeks.
“Of course, the family car of 2013 is vastly different to that of 1991,” said Toyota Australia Executive Director of Sales and Marketing, Matthew Callachor.
“Today’s vehicles provide a lot more bang for the buck with many more standard convenience and safety features.
“Power windows and doors, smart phone connectivity, DVD players, satellite-navigation, parking sensors, reversing cameras, stability control and a multitude of airbags are becoming increasingly common.”
It’s no secret the strong Australian dollar and lower import duties have made imported vehicles more competitively priced, which in turn has put downward pressure on local manufacturers to reduce prices and keep them there.
“Toyota is extremely proud of the way it has managed these challenges with the Camry, Camry Hybrid and Aurion sedans we build in Australia,” said Mr Callachor.
“Importantly, the reverse argument is also true during times when the dollar is weaker. The great value offered by locally built cars helps keep a rein on the prices of imported vehicles.
“The greater affordability of vehicles has translated into higher sales,” he said.
Last week Chinese brand Chery slashed the starting price of its cheapest model, the A1 city-hatch, to $9990 drive-away, making it Australia’s first new car to cost less than $10,000 for more than a decade.
Australia’s increased population and burgeoning new car market have obviously put more vehicles on our roads, with 16 million vehicles in operation today – up from less than 10 million in 1991.
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Written byMarton Pettendy
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