New car sales continue to slide as Toyota’s Corolla nabs second spot

New auto sales have continued to slide in July, as tighter lending and a new luxury car tax take hold.

The 2018 Toyota Corolla. Picture: Thomas Wielecki

The motor industry is blaming tight lending and the luxury car tax for the ongoing slump in new car sales.

On a year-to-date basis, new vehicle sales were down 7.7 per cent in July, the Federal Chamber of Automotive Industries reported, with sales during the month falling 2.8 per cent compared to the same period in 2018.

Sales of the nation’s perennial top seller, Toyota’s Hi-Lux ute, fell more than 10 per cent year-on-year to 3359 units in July, VFACTS data showed. But a big increase in Corolla sales helped Toyota claim the number 2 spot from the Ford’s Ranger ute. Among the nation’s 10 best-selling car brands, only Kia managed to increase sales compared to July 2018.

“The July sales figures continue to illustrate the tough market conditions facing the Australian automotive industry, and the sensitive nature of the economy over the past twelve months,” FCAI president Tony Weber said.

“Tight financial lending, drought, increasing luxury car tax imposts and the federal election have all contributed to make the Australian car market one of the toughest in the world.”

But tough times for the industry made for good buying conditions for consumers, Mr Weber said.

“It is great news for the consumer who is spoiled for choice with attractive new car offers as automotive brands provide excellent deals to stimulate sales growth,” he said.