Demand for new cars slowed in November with only 99,091 new vehicles sold, down 112,141 sales from the same period last year. According to the Federal Chamber of Automotive Industries (FCAI), this is an 11.6 per cent drop from November 2023.
FCAI Chief Executive Tony Weber notes that year-to-date figures are strong. “However, the market is starting to show a number of clear trends,” he said.
“The first half of 2024 recorded market growth of 8.7 per cent compared with 2023. Since July, we have seen the market decline by 8.2 per cent compared with 2023,” he further explained.
“The Private buyer segment continues to struggle with a decline of 16.6 per cent on November 2023. This follows falls of 14.2 per cent in October, 17.2 per cent in September and 15.9 per cent in August. This is a disturbing trend which illustrates how cost of living pressures are impacting households,” he added.
SUVs and Hybrids Steal the Spotlight
Consumer preferences remain steady, with SUVs and light commercial vehicles dominating the market. Passenger vehicles, however, have seen a sharp decline, making up only 13.7 per cent of the monthly market share.
Hybrid and plug-in hybrid vehicles continue to gain traction, making up 16.9 per cent of November sales compared to 9.9 per cent in 2023. On the other hand, electric vehicle (EV) sales lagged, showing consumer hesitancy to embrace fully electric options.
“The Australian experience with EVs is similar to many major markets overseas such as Europe, New Zealand and the USA. Consumers remain cautious about making the shift to pure EVs and instead are purchasing hybrid or plug-in hybrid vehicles,” Mr Weber explained.
States and Brands Face Mixed Fortunes
Every state and territory experienced a decline in sales, with the Northern Territory seeing the sharpest drop of 21.1 per cent, followed by Tasmania at 18.8 per cent. New South Wales remained the largest market, recording 30,490 sales, though this was still down by 12.2 per cent from November 2023.
Toyota retained its position as the market leader, delivering 20,562 vehicles, followed by Ford (8,720) and Mazda (7,588). The Toyota RAV4 emerged as the top-selling model with 5,526 units sold, outpacing the Ford Ranger and Toyota Prado.
Building EV Confidence
While hybrid and plug-in hybrid vehicles are gaining momentum, the industry faces challenges in encouraging EV adoption. Mr Weber said addressing infrastructure barriers is key.
“The industry will continue its part by introducing an increasing range of more affordable, low-emission vehicles while working alongside governments to address challenges such as recharging infrastructure which is critical to building consumer confidence for the transition to low-emission vehicles,” he said.
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