Number of Motor Vehicles

The total number of registered motor vehicles is expected to increase by 1.4% in January 2024 to reach 21.5 million motor vehicles. Growth is anticipated to be subdued during the year as supply chain disruptions have limited the availability of new vehicles and inflationary pressures have constrained purchasing power. A rising cash rate has also restricted consumers' and businesses' ability to purchase vehicles as the cost of borrowing has risen. Nevertheless, the population is projected to increase, supporting growth. Growth in the number of motor vehicles typically correlates with population growth, as most people aged 18 and older prefer a motor vehicle for transport. Furthermore, businesses are using an increasing number of commercial vehicles to service a growing population.

The composition of the vehicle fleet has changed over the past five years. Environmental considerations are driving consumers to opt for more fuel-efficient vehicles. SUVs have also become increasingly popular, as their fuel efficiency has improved and consumers have sought a more spacious vehicle. Utility vehicles have also followed a similar trend.