New car sales drop 49 per cent in April

Dark days for the motor trade as new car sales suffer their biggest monthly drop on record, falling a massive 49 per cent.

New car sales suffered their biggest drop on record in April.

New car sales suffered their biggest monthly drop on record in April, the latest in a growing line of history-making collapses in business and economic activity.

Sales dropped 49 per cent versus the same period last year, to 38,926, according to the Federal Chamber of Automotive Industries. This was the largest decrease since the data was first recorded in 1991.

So far this year there have been 272,287 vehicle sales, down from 344,088 over the same period in 2019: a 21 per cent decline.

“Clearly, the COVID-19 pandemic has had a major influence on the April sales result, and reflects a downturn in the broader economy right across the country,” FCAI chief executive Tony Weber said.

Close to a third of Australians have experienced a hit to their incomes as a result of the pandemic, a recent ABS survey found, as have nearly three in four businesses.

Josh Frydenberg has warned of a $50bn hit to economic output over the June quarter, while Treasury predicts the unemployment rate will hit 10 per cent in the coming months.

“These conditions inevitably impact consumer confidence and purchase decisions,” Mr Weber said.

Car dealers have been under extended pressure from a trend of falling sales, with April’s drop the 25th consecutive year-on-year drop.

Mr Weber said car dealers are putting in place protocols to help customers safely visit their businesses, and called on the government to do more to help the sector.

“Initially, we would ask that the instant asset write-off package is extended to further stimulate business purchasing,” he said.