Drivers hit the brakes on car buys as economy slows

Motorists’ need for speed is slowing down, with new car sales stalling in Australia for the fourth month in a row in what one industry expert called a “disturbing trend”. Vehicle sales declined by more than 10 per cent in November, according to figures released by the Federal Chamber of Automotive Industries on Wednesday, although consumers sales slowed even further. Australians’ love of big vehicles continued to show in the sales data, however, and hybrid and plug-in hybrid cars gained on their rivals. The disappointing vehicle sales results come after a bumper year of record figures, and FCAI chief executive Tony Weber said it showed high inflation and stagnant interest rates were affecting consumers. Private buyer vehicle sales fell 16.6 per cent during November, compared to the same month last year, he said, and followed double-digit falls in October, September and August. “The private buyer segment continues to struggle,” he said. “This is a disturbing trend which illustrates how cost-of-living pressures are impacting households.” Across the market, sales fell by 11.6 per cent, representing 13,050 fewer vehicles sold this November. The Northern Territory suffered the biggest vehicle sales drop, at 21.1 per cent, followed by the Tasmania (18.8 per cent) and the ACT (18.1 per cent). Even popular large vehicles were unable to buck the downwards trend, with SUV sales falling by 2.8 per cent and light commercial vehicles, such as utes, down by 23.3 per cent. Sales of battery electric cars fell by 24 per cent, with figures from the FCAI and Electric Vehicle Council showing more than 6500 were sold during November. Tesla’s Model 3 did register more sales this November, however, putting another 98 on the road compared to November 2023. Hybrid vehicles raced past them in popularity during the month, and Mr Weber said it showed many drivers were not confident enough to switch to full electric vehicles yet. “Car makers are responding to regulatory settings that mandate an increase in the number of zero-emission vehicles by introducing new products,” he said. “However, consumers remain cautious about making the shit to pure EVs and instead are purchasing hybrid or plug-in hybrid vehicles.” The automotive industry would need to work with governments to expand recharging infrastructure in Australia, Mr Weber said, to boost electric vehicle sales. Hybrid vehicles continued to appeal to drivers, registering more than 14,000 sales, while plug-in hybrid vehicle sales shot up by 80 per cent to more than 2500. SUVs dominated the month’s best-selling vehicles, topping the list with the Toyota RAV4 and taking up seven of the top 10 ranks. Only three utes registered in the top 10 during November, including the Ford Ranger in second spot, the Toyota HiLux in fourth, and Isuzu’s D-Max in eight position.