August new car sales slump
New car sales slump as interest rates and LCT, not fuel biteThe Australia new car marketplace slumped in August to be over 12 per cent down on the same month last year. According to official VFACTS figures released today by the Federal Chamber of Automotive Industries (FCAI), August saw a total of 77,324 cars, trucks and buses sold, 10,882 or 12.3 per cent less than August 2007.
Total new vehicle sales year-to-date remain up on last year, though the margin is now scant – just 0.7 per cent with 703,995 vehicles sold August 2008 YTD.
"The August downturn reflects the broader slowdown in domestic demand which is largely attributable to previous interest rate rises," FCAI Chief Executive Andrew McKellar said on the announcement of the latest stats today.
"Yesterday's official interest rate cut is a welcome move, and will help renew future confidence in the marketplace, but unfortunately the figures suggest it may have come too late and further reductions may be necessary," he said.
The proposed Luxury Car Tax hike (still to be passed by Federal Parliament) is responsible for a near-20 per cent drop in prestige car sales, says the FCAI. According to the VFACTs stats, sales of vehicles in "core 'luxury' segments" fell by 19.3 per cent last month compared to the same month last year.
"There is clear evidence that the slowdown has been compounded by the proposed hike in the luxury car tax and wider economic uncertainties. This unnecessary and unfair tax grab is continuing to have a damaging impact on the Australian car industry," McKellar said.
Fuel costs seem to be having less effect than some quarters give credit, however. For example, sales in all segments of the passenger vehicle and SUV markets were down, save for the least fuel-efficient category of all – Large SUVs. Sales in this segment -- dominated by vehicles like the Toyota LandCruiser -- increased by 23.3 per cent in August.
Continuing on the 'fuel prices be damned' theme, the top selling vehicle for the month was Holden's Commodore, which bounced back to over 4800 sales on the back of over 1500 Sportwagon registrations. In the first full month of Sportwagon sales, Holden says this amounts to almost double the wagon volume of August 2007.
Year-to-date, Toyota leads the local marketplace with 165,641 vehicles sold. Next is Holden with 88,969 followed by Ford with 72,536 vehicles.
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