New vehicles market rebounds – strongest sales result since March

By July 3, 2020 News

In a promising sign for Australia’s economic recovery, the Federal Chamber of Automotive Industries (FCAI) has today revealed a rise in new vehicle sales during June 2020, with a total of 110,234 vehicles sold during the month.

While this represents a decrease of 6.4 per cent over June 2019, it is the strongest result since the beginning of the COVID-19 crisis which saw March sales down 17.9 per cent, April sales down 48.5 per cent and May sales down 35.3 per cent. FCAI chief executive, Tony Weber, attributed the slight recovery to 4 key reasons:

  1. The easing of COVID-19 restrictions
  2. Seasonality (ie -time-of-year)
  3. The extension of the Federal Government’s instant asset write-off scheme
  4. Pro-activity from manufacturers and dealers

“Some states have seen the easing of COVID-19 restrictions, and this has increased floor traffic through dealerships,” Mr Weber said. “In addition, June is traditionally a very strong month for new vehicle sales. The End of Financial Year campaigns are well known, so it’s an excellent time for businesses and consumers to replace their vehicles.”

“The extension of the Government’s instant asset write-off scheme has also been a positive influence, and we have seen a strong surge in marketing activity from both brands and dealerships, who are offering an array of attractive retail packages in a bid to recover from the impacts of the COVID-19 pandemic.”

Toyota was the best-selling brand in June, with 22,867 sales recorded.  In second place was Mazda with 9,420 sales, followed by Hyundai with 7,737 sales, Ford with 7,624 sales and Mitsubishi with 7,419 sales.

“Stimulus packages from the Federal Government, such as Job Keeper and Job Seeker, have helped to restore some consumer confidence and supported the small bounce back during June.

“However, there’s no doubt that the new vehicle industry in Australia is still under high pressure.  We’re not out of the woods yet,” Mr Weber said.