Revving up
High petrol prices have not discouraged consumers from buying new cars and sports utility vehicles.
Metropolitan retail fuel prices closed out the March quarter 18¢ higher, driven up by crude prices that have been inflated by global supply issues. But the petrol price has not discouraged consumers from buying cars and sports utility vehicles (SUVs). Seasonally adjusted sales for both sectors were up 3.4 per cent and 7.8 per cent respectively, representing a record high for the SUV market. The high Australian dollar should translate to consumer savings on imported vehicles, and the strong job market, rising wages and discounting encourage latent spending. Overall, car sales are up just 2 per cent from last April, dragged down by a 4.6 per cent drop in passenger vehicle sales. Listed car dealer Automotive Holdings Group should see some benefit, as may muffler and exhaust manufacturer Berklee , and spare parts importer and provider Supply Network .
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