Australia’s new motor vehicle sales grow in September, further modest growth likely

Australia’s new motor vehicle sales grew sequentially in September to a new monthly record. It rose 2.5 percent, as compared to prior month’s zero percent growth. The Australian Bureau of Statistics recorded that 100,640 sales were made in September. On a year-on-year basis, new motor vehicle sales grew 0.8 percent, showing that sales have continued to stay at historically high levels for the last year.

SUV sales rose 5.9 percent year-on-year. In the month, 39,129 SUVs were sold as compared with the sales of 40,342 passenger vehicles. Passenger vehicles sales dropped 8.9 percent annually, with ‘other’ vehicles sales rising 13.8 percent to 21.2k. The rise in ‘other’ vehicles indicates reasonable business conditions, said St George Economics in a research note.

There were considerable variations in sales of vehicles throughout the States and Territories in the year to September. Sales in the Northern Territory rebounded from a slump, rising 14 percent. Meanwhile, South Australia recorded a growth in sales of 10.4 percent. Victoria and NSW registered slow growth, whereas Queensland, Western Australia, the ACT and Tasmania saw declines in sales.

The growth rate of motor vehicle sales has decelerated; however, sales continue to be at historically high levels.

“With ongoing population growth, reasonable business conditions, steady jobs growth and a relatively stable level of unemployment, further modest growth in sales can occur – but growth rates across the States and Territories will vary according to the vagaries of each regional economy”, added St George Economics.