Trends Look Good for New-Car Sales in Australia

Australian new-vehicle sales, already running at near-record levels appear set to accelerate.

Roy Morgan Research says its polling shows the number of potential new-car buyers has increased for a third consecutive month, with its figures indicating 2.3 million people are planning to buy a new car in the next four years.

This is up a substantial 150,000 from the same time last year.

Roy Morgan says short-term intention also has increased year-on-year, but has declined slightly since last month.

Australians in the market for a new car in the next 12 months now number 624,000, compared with 608,000 the same time last year.

The research agency says different groups within the population have distinct preferences when it comes to the brand of new car they’re likely to purchase next.

Among the more affluent communities, prestige brands are especially popular, but there also are differences within this group.

New car intenders from the wealthy Leading Lifestyles community are more likely to have their sights set on a new Mercedes-Benz or Volkswagen, while their younger but similarly higher-earning Metrotech counterparts likely are planning to purchase a new BMW or Audi.

Despite their Australian manufacturing operations winding down in coming years, national classics Ford and Holden are among the makes family-oriented, suburban communities are looking to buy. Their popularity also is higher than average among new-car intenders from lower-income communities.

Meanwhile, the research group says motorists from the budget-conscious community are more likely to choose makes from Asia, which is consistent with the segment’s ethnic diversity.

Roy Morgan Research Automotive Industry Director Jordan Pakes says Toyota remains Australia’s most-intended brand.

“Despite the market’s continued growth, intention levels for Toyota have softened recently, with Mazda closing the gap on the market leader,” Pakes says in a statement.

“Whereas 205,000 prospective buyers separated the two makes 12 months ago, this has since dropped to 102,000.”

Pakes says the overall increase in car-buying intentions is consistent with the record sales numbers reported, with nearly all states and territories recording higher sales for the first seven months of 2015 compared to the equivalent period last year.

The Federal Chamber of Automotive Industries reports the Australian market was up 3.2% after seven months to 670,735 units.

“This sales growth has largely been driven by the boom in private SUV sales, with brand-new models such as the Mazda CX-3 and Honda HR-V flying out of dealerships,” Pakes says.