New car sales figures released today indicate an alarming decrease in sales of 28.8% for the month, the worst August result in 23 years and the 29th month in a row of falling sales.
“Yesterday Australia entered its first recession in nearly 30 years, but the new car industry has been in recession for nearly 30 months,” said AADA CEO James Voortman.
“The numbers in Victoria are particularly alarming with a 66% contraction in new car sales and Dealers in that state are hopeful of an announcement on Sunday that will allow them to return to trade,” Mr Voortman said.
“Dealerships are well placed to observe COVID-safe plans and already have measures in place, in preparation for when restrictions are eased. We will be asking the Victorian Government to allow us to reopen responsibly so we can start servicing our customers,” he said.
“The JobKeeper program has provided valuable support for Dealers and kept thousands of people employed, but more is needed as we face uncertainty,” he added.
The AADA is urging the Federal Government to provide assistance through measures such as adjusting responsible lending laws to free up much needed finance, extending the instant asset write-off scheme and totally reviewing the automotive taxation scheme which is a legacy of a bygone era designed to protect a local manufacturing industry that no longer exists.
“Given the uncertainty and disruption in the market, the August result is very concerning because it means businesses are under severe stress and people are losing their jobs. There is a path forward however and we need our federal and state leaders to work together, listen closely to what industry are saying and guide us to a recovery,” Mr Voortman said.