New research about car buying intentions underscores the challenges of the Government’s plan to reduce Australia’s light vehicle emissions by 60% in five years.
‘EV & Hybrid Vehicle Wave 2 Insights Report’ released by the Australian Automotive Dealer Association shows that electric vehicle sentiment is shifting at a trickle rather than a flood, while most consumers plan for their next vehicle to be a SUV or Ute.
The research is a second wave of tracking EV sentiments across the community following a similar study conducted in December 2022, collecting feedback from a sample of 2,000 Australian drivers (representative by age, gender and household location across Australia).
“The proportion of the market open to buying an EV has grown but represents only one in four buyers, as the strongest barrier to considering an EV remains the higher purchase price,” said AADA CEO Mr James Voortman.
“Most buyers are looking at a non-electric SUV or a Ute as their next vehicle. This is no surprise because these are the vehicles Australians love, but are also the cars most at risk of an overly aggressive vehicle emissions standard,” said Mr Voortman.
“It is also clear that consumers are less likely to buy a new one due to the current cost of living crisis. The last thing we need to do at this time is to further discourage consumers from buying new cars which are safer, cleaner and greener than the old cars they replace,” he said.
“We urge the Government to study this survey and adopt an emissions policy which reduces vehicle emissions in a way that protects affordability, choice and the local automotive industry,” said Mr Voortman.
Among the survey findings are:
“This research confirms what we already knew, Australians continue to preference SUVs when considering their next vehicle purchase, are very conscious of price given current cost of living pressures, and intention to consider an EV on the next main vehicle driven is lowest when replacing large SUVs and utes,” said Mr Voortman.
The AADA represents 670 new car Dealers in Australia that operate over 3,000 dealerships that directly employ over 56,000 people.
January used car sales figures have been released today in the first monthly edition of the Automotive Insights Report (AIR) for 2024.
The January 2024 AIR shows that the average time taken to sell a used car decreased slightly this month with consumers starting the year off strongly.
“Despite the continued tightening in cost of living pressures, customers have increased their purchases of used cars in January with an increase of 7.3 per cent in cars sold compared to December 2023,” said AADA CEO James Voortman.
“The market appears to have bounced back after the holiday period, and continued strong supply of new cars has had a flow on effect in the availability of used cars in the market,” he said.
“Petrol and diesel cars accounted for 96 per cent of used cars sold, with hybrid sales increasing by 2.7 per cent this month.”
“The market for used EVs and PHEVs sales decreased in January, and the market will likely remain volatile month-to-month, with a relatively low volume of vehicles being listed for sale,” said Mr Voortman.
The Automotive Insights Report shows that in January:
New car sales figures for the month of January 2024 were released on 6 February by the FCAI with a record January result. Deliveries have increased by 5.8% compared to January 2023, with a total of 89,782 new vehicles delivered so far this year.
The AADA assessed VFACTs Top 20 Brands & Models for January 2024, ranking them by volume.
The AADA and AutoGrab are pleased to release the first annual Automotive Insights Report (AIR) – Year That Was for 2023.
The data shows that 2,074,535 used cars were sold in Australia in 2023, with strong used car supply aligning with the record year for new vehicle sales.
“This data demonstrates the significance of the used car market in Australia with more than two million used cars sold in 2023. For every new car sold 1.7 used cars were sold, confirming that most Australians are deciding to purchase used cars,” said AADA CEO Mr James Voortman.
“The combined new and used car market saw almost 3.3 million cars sold in 2023 and it is important for industry participants, regulators and policymakers to look at the entire market when making decisions” he said.
“The demand for used cars remained robust in 2023, attributed to our growing population and cost of living pressures reducing buying power,” said AutoGrab Chief Commercial Officer Saxon Odgers.
“The good news for those looking to purchase a used car is that we’ve seen a clear downward price trajectory since March 2023 following a surge of new vehicle supply, with this pattern anticipated to persist through the first half of 2024. This represents a win for consumers who now have a choice when looking to buy their next car as new cars are available for delivery and used cars are more accessible,” said Mr Odgers.
“Congratulations to Toyota for being the top selling used car brand in 2023 and to the Ford Ranger for narrowly beating off the Toyota Hilux to claim the mantle of Australia’s top selling used car for the year,” said Mr Voortman.
“When diving into retained values of vehicles, a topic that interests many consumers and Dealers, we can see that across all age groups, utes and light commercial vehicles held their values above the average. Passenger vehicles across all age groups tracked close to the average, while SUVs were the worst performing vehicle segments in terms of retained value, sitting well below average for all age groups,” he said.
The Automotive Insights Report shows that for 2023:
The used EV market saw an almost doubling in supply and sales. However, EVs represent only 0.7% of market share; have below average retained value; and take longer to sell than petrol and diesel cars.
In the fast lane of business, cyber threats are accelerating, and your dealership is a prized target. Our webinar is your GPS to navigate the treacherous waters of Business Email Compromise (BEC) fraud.
Title: Business Email Compromise Fraud – Safeguard Your Dealership
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The December edition of the Automotive Insights Report (AIR) has been released today.
AIR shows that used car trading softened in December compared to the previous month, most likely due to seasonal factors. The average time it takes to sell a used car is increasing over time, while the retained values of used cars is edging down.
“In December used car sales and cars listed for sale contracted from the previous month as Australians fell into the Christmas and New Year holiday period,” said AADA CEO Mr James Voortman.
“Petrol and diesel cars dominate the used car market making up around 95 percent of cars sold and cars for sale. The market for used electric vehicles is immature but is expected to grow as new EV sales make their way onto the used market,” said Mr Voortman.
“Despite a reduction in days to sell from the previous month, we are still seeing a trend of used vehicles taking longer to sell with December being the second month in a row that average days to sell is over 50,” he said.
“The retained value of cars continues to reduce, indicating an improving supply situation which should bode well for consumers,” he said.
The Automotive Insights Report shows that in December:
The 2023 Annual Report rounding up the full calendar year of used car sales will be released to the public in the coming weeks.
VFACTS for December 2023 and the full calendar year were released today by the Federal Chamber of Automotive Industries. It was a record-breaking year for new car deliveries, with 1,216,780 vehicles delivered, beating the previous sales record set in 2017. It represents a 12.5 per cent increase on 2022.
The record VFACTS figure is testament to manufacturers and Dealer’s ability to deliver vehicles to customers from strong order banks, along with demand remaining high for most of the year. With high interest rates and cost of living pressures it is anticipated the record year won’t be repeated in 2024.
Toyota continued to dominate, despite a slight drop in their numbers compared with 2022. They held a 17.7 per cent market share and were the top selling manufacturer for the 21st year in a row with 215,240 cars sold. The top five was rounded out by Mazda (100,008), Ford (87,800), Kia (76,120) and Hyundai (75,183).
Brands that didn’t fare as well include Honda, with the brand posting their lowest sales figures on record for the second year in a row, Mercedes-Benz, whose sales figures decreased by 9.3 per cent, and Suzuki saw a 20.9 per cent decrease for 2023.
SUVs and light commercial vehicles remained extremely popular, accounting for 15 of the top 20 models sold in 2023. They represented just over 78 per cent of vehicles sold for the calendar year.
Battery electric vehicles continued to increase in popularity with 87,217 vehicles sold for the year, representing 7.2 per cent of sales. 16.2 per cent of vehicles sold in 2023 were low emissions vehicles including hybrids, BEVs and PHEVs.
We would like to wish you and your families a very Merry Christmas and a Happy New Year. I have personally appreciated your support and hard work throughout this busy but successful year and look forward to working with you all again in 2024.
Our offices will be closed from Saturday, 23 December 2023 and will reopen on Monday, 8 January 2024.
AADA staff will of course be on stand-by throughout this time should an urgent matter arise.
Kind regards,
James Voortman and the team at AADA
The first edition of the Automotive Insights Report (AIR) is live today. AIR is a joint initiative from the Australian Automotive Dealer Association (AADA) and AutoGrab which will provide data on Australia’s used car market every month.
“Prior to the release of AIR there has been no reliable and regular dataset for the used car market, even though more than 65 per cent of all cars purchased in Australia are used cars,” said AADA CEO Mr James Voortman.
“AADA has partnered with the used car market data specialists, AutoGrab, to provide regular market data which will serve as a valuable resource for Dealers, consumers, and enthusiasts interested in the used car market,” he said.
“The first edition of AIR shows that after a number of years of tight supply, Australia’s used car market is seeing increased levels of stock with increases in the time it takes to sell a car and a gradual decline in retained values,” said James.
“AutoGrab is thrilled to partner with the AADA to bring greater transparency to the used car market. For the first time, consumers can navigate the market with confidence, armed with valuable insights into vehicle values and market trends, said Daniel Werzberger, Founder and CEO of AutoGrab.
“In an increasingly challenging landscape for car dealerships, with average days to sell on the rise and retained values experiencing a downward trend across the board, our priority is to revolutionise the way people navigate the used car landscape. This report marks a significant step forward in our mission to make car buying a transparent, informed, and value-driven experience for all,” he said.
The inaugural report shows that in November:
These statistics will now be released each month, with next month’s release offering full calendar year data for the used car market.
