Vehicle sales fall

According to Federal Chamber of Automotive Industries (FCAI) figures, motor vehicle sales fell in August. The FCAI attributes the effects of high fuel prices and rising interest rates to the decline in sales for the month.

The FCAI's VFACTS figures released on Tuesday (September 5) show that the Australian new vehicle market fell 5.2 per cent compared to last August. Year-to-date (YTD) end of August sales are now down 3.4 per cent for the same period last year.

The FCAI says that despite the downturn being greater than it had predicted, the reception to the new locally manufactured Toyota Camry (pictured) and Holden VE Commodore: "is a great encouragement to the local automotive industry".

"After four years of record growth the FCAI had been forecasting a slight decline of total sales in 2006 and the downturn is only a little greater than our initial prediction," said the FCAI's chief executive, Peter Sturrock.

"As the interest rate rises take effect it is not only the fuel economy of a vehicle that buyers are considering but also the monthly repayment that would be required."

The FCAI suggests fuel prices have most affected the SUV market, which was down 10.8 per cent last month with YTD down 7.4 per cent.

"Fuel economy is clearly the issue affecting SUV sales and it is notable that within that market the sales of Small SUVs are less affected," said Sturrock.

Not all segments suffered: the light car segment registered a 31.4 per cent rise over the same month in 2005, and the small car segment was down only slightly (1.3 per cent). Half-yearly results showed light car sales were up 9298 vehicles or 19.6 per cent for the first six months compared with 2005, and small car sales rose 2994 vehicles or 2.8 per cent for the same period.

The FCAI says that on present trends the industry will sell about 970,000 vehicles by year's end. This compares to the FCAI's forecast at the beginning of the year of 980,000 and to the record 988,269 sold in 2005.