Australia’s new motor vehicle sales fall sequentially in October, but remain at elevated level

Growth in Australia’s new motor vehicle sales reversed in October after reaching a record high in September. In sequential terms, new motor vehicle sales dropped 2.4 percent in October, reversing the 2.4 percent rise recorded in September. But despite the decline, new motor vehicle sales continue to be high on a historical comparison, noted St George Economics in a research report. On a year-on-year basis, new motor vehicle sales grew 1.2 percent, up slightly from 0.8 percent year-on-year rise in September.

SUV sales grew 6.9 percent year-on-year in October and are quite close to overtaking monthly sales of regular passenger vehicles. A total of 38,634 new SUVs were sold in October as compared with the 39,281 new regular passenger vehicles sold in the same month. Passenger vehicles sales dropped 4.6 percent year-on-year, whereas sales of ‘other’ vehicles rose 2.7 percent.

“The increase in ‘other’ vehicles, which includes utes, buses and trucks, is an indicator of reasonable business conditions in the Australian economy, although annual growth has slowed in recent months”, said St. George Economics.

There was considerable variation in vehicle sales throughout the State and Territories over the year to October. New vehicle sales growth has been robust in NSW and Victoria. On the other hand, sales have softened in the ACT, South Australia, Western Australia and Queensland. Sales in the Northern Territory also slumped, whereas in Tasmania, sales grew 14.3 percent in the year to October.

Australia’s new motor vehicle sales continue to be at an elevated level, on a historical comparison, in spite of a decline in October. Given the steady jobs growth, ongoing population growth and reasonable business conditions, the nation’s new motor vehicle sales are expected to remain elevated, although paces of growth might vary between regions, added St. George Economics.