Car sales increase as vehicle supply improves

Consumers have been forced to pay more and wait longer for their vehicles as global supply chain issues dogged the industry, but things could be looking up.

New-car sales spiked in August as the car industry showed early signs it was recovering from long running supply issues.

Sales were up 17 per cent on last year as stock of popular models, including the best-selling Toyota HiLux, began to flow through the system.

The head of the Federal Chamber of Automotive Industries, Tony Weber, said the August result was “encouraging”.

“The August VFacts sales are the best August result since 2017. This gives hope that the supply of vehicles to the Australian market is beginning to show signs of improvement,” he said.

Utes continue to dominate the sales charts. Picture: Thomas Wielecki.

Car buyers have been hammered by the stock shortages, forced to wait longer and pay more for their vehicles as demand outstripped supply.

Some vehicles have waiting lists of more than 12 months.

The price of new cars has risen by more than 12 per cent over the past two years, while some unscrupulous dealers have been gouging buyers by advertising second-hand cars and demonstrator models for thousands of dollars more than the recommended retail price.

The shortage of new cars created a spike in used car values, as buyers paid over the odds to secure a vehicle quickly.

Experts suggest that used car prices have risen by as much as 40 per cent in the past two years.

Industry executives had predicted the supply chain wouldn’t return to normal until early next year, but this month’s sales result suggests it may be sooner.

The HiLux attracted 6214 sales last month – an increase of almost 40 per cent on the same month last year.

Ford sold 4497 Rangers, an increase of about 14 per cent.

The top-selling vehicles were the Toyota HiLux and the Ford Ranger. Picture: Thomas Wielecki.

Toyota’s RAV4, buoyed by the success of the hybrid model, was third with 2482 sales and the Tesla Model 3 was fourth.

Tesla has been sitting on a backlog of orders for some months, as supply from its Shanghai factory was shut down due to Covid.

The brand sold 2380 Model 3s and 1017 Model Ys, which put it in the top ten on the sales charts.

The brand is tipped to sell even more vehicles next month when more deliveries of its new Model Y SUV begin to filter through the network.

Weber said sales of electric vehicles and hybrids were particularly strong in August.

“We have seen strong sales of battery electric vehicles in August, with Tesla alone selling 3397 vehicles. In the month, EV sales were 4.4 per cent of the total market. This is the highest market share for pure battery electric vehicles ever recorded in a single month in Australia,” he said.

Sales of electric vehicles increased, led by Tesla. Picture: Thomas Wielecki.

Mr Weber said more than 10 per cent of cars sold this year had some form of electrification.

“Year-to-date EV sales are 2 per cent of the total market, hybrids are 7.6 per cent and plug in hybrid vehicles are 0.6 per cent,” he said.

Diesel-powered utes continue to dominate the market, though, making up four of the top ten selling vehicles. Toyota’s LandCruiser, which is available as a 4WD wagon and ute, was the fifth best selling vehicle.

Toyota dominated the new-car market, selling 20,616 vehicles for a 21.6 per cent of the market. Mazda was a distant second with 8824 sales, ahead of Kia with 6780.

The growth was led by New South Wales, where sales were up 40 per cent in August. Sales in Victoria were up 18.4 per cent and Queensland sales were up 11.7 per cent.