Car sales continue to crash on back of COVID-19 downturn

Vehicle sales crashed by more than 65 per cent in Victoria in August, a slump matched by a steep fall-off for Toyota’s perennially top-selling HiLux.

Sales of Toyota’s popular HiLux fell heavily in August. Picture: Supplied.

The Victorian lockdown has crashed car sales in the state, driving a broader national reverse that saw final sales close 28.8 per cent lower in August 2020 compared to the same time last year.

On a year-to-date basis, the numbers are not much better, down 20.4 per cent, as Australians steered clear of new cars in droves.

Only 60,986 cars were sold in Australia in August according to data from the Federal Chamber of Automotive Industries.

August sales in Victoria slumped by 65.9 per cent, as shoppers stayed home in droves and new cars came in low on priorities.

The ACT actually bucked the trend, where sales crept 0.4 per cent above those recorded in August 2019.

FCAI CEO Tony Weber said the grim numbers out of Victoria were pushing against the broader stimulus package that was supporting the economy.

“The industry has moved swiftly to implement robust COVIDSafe protocols to ensure the health and wellbeing of employees and customers is preserved,” he said.

“However, it is particularly difficult for our members and their Victorian dealer networks under the current Stage 4 Restrictions, and this is reflected in the reduced sales figures.”

Mr Weber called for the reopening of the economy if numbers were to head the other direction.

“While we have the utmost respect for essential health priorities, the automotive industry supports the reopening of our economy under appropriate COVIDSafe protocols,” Mr Weber said.

“We’ve seen 29 consecutive months of diminishing sales in this industry, and there’s no doubt our members are feeling the pinch. The move to commence the reopening of industry and markets, especially in Victoria, needs to start as soon as possible.”

But the pandemic continues to deliver strange effects, with the top-selling car for the country in 2019 crashing to earth, while other models have managed to grow their sales during the viral times.

The Toyota RAV4 came in at top spot after more than doubling its 2019 sales figures for August, with 4825 leaving the lot in August.

The Toyota HiLux, the top-selling car in August 2019, has careened to ninth place on the list after only 1217 were sold in August.

But not all is grim for utes, with the Ford Ranger still managing to command second spot for sales in the car pecking order with 2935 sold in August.

Almost all other models in the top 10 list saw their sales decline.

The drop comes as used car prices soared, with recent data from Moody’s Analytics showing wholesale prices had jumped 31 per cent since April and were now 16 per cent higher than in January.