New Passenger Motor Vehicle Sales

IBISWorld forecasts the number of new passenger motor vehicle sales to rise by 17.1% in 2023-24, to total 957,358 vehicle sales. This is largely due to an improvement in the affordability of vehicles as demand constraints gradually ease. Global semiconductor shortages and supply chain disruptions inflated the prices of motor vehicles over the three years through 2022-23. Additionally, despite remaining negative an improvement in consumer confidence over the year is expected to make consumers become more optimistic about their future financial position, prompting some individuals to purchase new vehicles. Nevertheless, elevated interest rates and ongoing inflationary pressures in the current year are expected to constrain further growth in new passenger vehicles.

The number of new passenger vehicles sales has climbed over the past five years. This rise is largely attributable to growth in the population aged over 18 and climbing household discretionary incomes. Even so, volatile economic conditions have restricted consumer purchasing power, weighing on the likelihood of them purchasing a new motor vehicle. Additionally, many financial institutions tightened their lending criteria following the final report of the Financial Services Royal Commission in February 2019, which significantly affected sales for the two years through 2019-20.