If you needed any signs that the supply chain is getting back to normal, just look at the record result for new car sales in July. The order pipeline for fleet buyers is finally being filled which will release more stock into the used car market at a time when the economy is slowing.
With more stock arriving every month, the long term influence of fleet purchases is returning to normal. So far in 2023, fleets (business, government, rental, heavy commercial) have purchased 48% of all new vehicles.
Manufacturers spend a mountain of money on retail advertising, to only sell half the new cars every year. Targeting fleet buyers will become a major focus as retail traffic slows in 2023 and fleets continue to replace their cars, vans, and trucks.
July 2023 news sales represented an increase of 14.7% compared to the same month in 2022 and breaks the previous July record of 92,754 in 2017.
FCAI Chief Executive Tony Weber said that the July 2023 result was an indication that the market continued to recover from supply shortages resulting from COVID plant shutdowns, microprocessor shortages and logistics and shipping bottlenecks.
“During the past twelve months the issue has been one of securing supply for consumers, however as these pressures ease, we are starting to see a return to more stable market conditions,” Mr Weber said.
“Many of these vehicles were ordered several months ago, so it is important to monitor the broader economic conditions through 2023 and their impact on private and business demand.
Mr Weber added that sales in the passenger vehicle segment remained at an historically low level, however many of these sales have transitioned into the SUV category.
“Passenger vehicles now represent 17.7 per cent of the market in July while the SUV category now sits at 58.9 per cent. However, contrary to widely held opinion, not all SUVs are large vehicles as 75 per cent of SUV sales are in the medium, small and light categories.”
Sales of zero and low-emission vehicles continued to grow with 17.9 per cent being battery electric, hybrid or plug-in hybrid models. Battery electric vehicles accounted for 7.0 per cent of July sales.
China continues to grow in importance as a country of origin with 15,853 new vehicles being from that country. That is an increase of 130.1 per cent on the same month last year.
Sales across every State and Territory increased this month compared with July 2022. Sales in the Australian Capital Territory increased by 22.4 per cent (1,438); New South Wales 11.3 per cent (29,516); Queensland 4.3 per cent (19,719); South Australia 17.0 per cent (6,612); Tasmania 33.9 per cent (1,777); Victoria 22.7 per cent (27,097); Western Australia 21.6 per cent (9,797) and Northern Territory 19.4 per cent (903).
Toyota was the highest-selling marque with 19,191 sales. Mazda followed with 8,307 then Ford (7,109), Hyundai (6,521) and Kia (6,150).
The top selling vehicles in July 2023 were:
- Ford Ranger – 5,143
- Toyota Hi-Lux – 4,670
- MG ZS – 3,852
- Tesla Model Y – 3,330
- Toyota RAV4 – 2,750
