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The number of Australians planning to buy a new car in the next four years has tumbled almost 13% in just the past two months, with a new survey indicating this could see the industry taking a A$10.4 billion ($9.7 billion) hit as a result.
Roy Morgan Research’s latest data shows that since hitting an all-time high of close to 2.5 million potential new-car buyers in May, the market has fallen to 2.17 million Australians, the lowest result since November 2012.
The number of people intending to buy a new car in the next 12 months also has declined and now sits at 608,000 – 14,000 below the long-term average of 622,000 and well down from May’s result of 721,000.
The numbers have crashed since the new coalition government introduced a tough budget, perceived as leaving consumers worse off.
Jordan Pakes, Roy Morgan Research automotive industry director, says since hitting the record high in May the industry has taken a substantial hit, with more than 300,000 people deciding to exit the market.
“With the average new-car buyer looking to spend around A$34,500 ($32,325) on their next car, this equates to a loss of almost A$10.4 billion in potential revenue for the auto industry, unless the market improves soon,” Pakes says in a statement.
With total new-vehicle sales already down for the year, he says the latest car-buying intention results will be of concern.
“The recent decrease in car-buying intention coincides with a strong decline in consumer and business confidence since the May federal budget announcement,” Pakes says.
“The main factor influencing this decline in consumer confidence is a growing proportion of Australians who expect to be worse off this time next year.”
The survey finds the Aussies most likely to be reconsidering new-car purchases are those categorized as merely getting by financially.
“At a brand level, almost all major brands have lost share since May, with only Kia, Subaru, Hyundai, Honda and BMW bucking the trend,” Pakes says.
