Australian new car market suffers downturn due to shortages

THE AUSTRALIAN AUTOMOTIVE MARKET recorded sales of 74,650 new vehicles which is a decrease of 8.1 percent on October 2020 figures.

This decrease represents the impact of ongoing microprocessor shortages on international supply chains, but the supply of vehicles to Australia is expected to stabilize in 2022.

Sales in the Australian Capital Territory were down 22.3 percent on October 2020. Western Australia recorded a decrease in sales of 15.4 percent, followed by the Northern Territory with a decline of 12.4 percent in vehicles sold. NSW recorded a fall of 12.2 percent and South Australian figures were down 11.9 percent compared to the same month last year. Queensland recorded 10.3 percent fewer vehicles sold on October 2020 figures. Tasmania recorded a decrease of 1.6 percent vehicles sold and Victoria saw an increase of 6.3 increase on last year’s figures.

FCAI Chief Executive Tony Weber said it was clear manufacturers were having challenges with supply chains.

“Automotive manufacturers like all those in the global manufacturing sector are dealing with a microprocessor shortage which is leading to longer wait times to get products to market. Australians are continuing to purchase vehicles, and carmakers are working to deliver products to our shores,” Mr Weber said.

While sales were down overall, the number of electric vehicles sold continues to rise. This correlates with more State and Territory incentives for EVs coming online throughout the country.

“We have seen Victoria and NSW release comprehensive legislation to support electric vehicles which was followed just last week by South Australia.

“All of these jurisdictions worked proactively with industry to provide infrastructure investment and consumer incentives. We look forward to working with Governments at all levels to form nationally consistent policies which will make electric vehicles more accessible to the Australian motorist,” Mr Weber added.

Toyota was the market leader in October with 15,395 vehicles sold. This was followed by Hyundai with 6115 and Ford with 5462. Mazda was fourth place selling 5181 cars and Kia came in fifth with 4853.

The Ford Ranger was the highest selling model with 4135 sold. The Toyota Hi-Lux came in second with 3961 and the Toyota Landcruiser was third with 2031 vehicles in the hands of customers. This was followed by the Toyota Corolla with 1989 sold, and the Hyundai i30 with 1946 sold.