New car supply to Australia cannot keep up with demand

The peak agency of the Australian automotive industry has announced new car sales in June 2022. This is 99,974 units sold, a 9.7% decrease compared to June 2021.

Tony Weber, CEO of the Federal Automobile Industry Council (FCAI), announced on Tuesday that a combination of COVID-19 pandemic manufacturing turmoil, war in Ukraine and shipping issues will bring a new car to Australia. He said the supply had advanced. It cannot meet the demand.

This supply shortage means that buyers can expect to wait three months to a year for a new car to arrive at the dealer.

“Globally, automakers continue to suffer from factory closures. In Europe, there is a supply of parts heavily affected by the Ukrainian conflict. Microprocessors continue to be in short supply and global shipments are unpredictable. It remains possible, “he said.

“Although demand for new cars remains strong in Australia, supply chain problems are unlikely to be resolved in the near future.”

With the exception of the Northern Territory (NT), which saw an increase of 16.3% compared to June 2021, 1,115 vehicles were sold, with sales in other states and the Australian Capital Territory (ACT) declining. did.

Of these, Tasmania sold 1,572 units, down 17.2%, while Western Australia had the least impact, with 9,813 units sold, down only 2.2%.

Toyota led the market in June, with a total of 22,561 units sold, with the Hilux model being the bestseller. Kia, Hyundai, Mazda, and Mitsubishi were also popular.

Used car at the same price as new

Due to the lack of supply of new cars, the demand for used cars is increasing, the mileage meter readings are low, the price of a car in good condition is the same as that of a new car, and in some cases the price is pushed up until it becomes even more expensive.

Epoch Times Photo
Toyota Rav4 plug-in hybrid (R) vehicle at the 19th Shanghai International Automotive Industry Exhibition held in Shanghai on April 19, 2021. (Photo courtesy of Hector RETAMAL / AFP) (Photo courtesy of HECTOR RETAMAL / AFP, via Getty Images)

For example, the Royal Automobile Club of Victoria (RACVIn February 2022, it was reported that the official driveaway price for the new Toyota RAV4 Cruiser all-wheel drive hybrid was $ 53,833 in Victoria.

However, buyers faced up to nine months of waiting, and many weren’t ready to wait that long, so the price of a used RAV-4 soared to an average of $ 61,000.

Long wait times are affecting the majority of car makers, and high used car prices are expected to continue until 2022, according to Santo Amoddio, managing director of Glass’s Guide, which monitors Australian car prices. ..

“We’ve been monitoring the used car market for over 30 years, and this is the first time that car prices have consistently risen every month during that period, since last April,” he said. rice field. Said

“When it comes to used car prices, we’ve seen price increases of up to 30% on some models. We’ve seen cars sold for four to five years at the prices people paid. “

Amodio attributed the shortage of new cars primarily to the shortage of semiconductors, but emphasized that the pandemic is affecting car production at all levels. Lack of truck drivers to transport vehicles on and off those vessels.

Steve Milne


Steve is a Sydney-based Australian reporter with sports, arts and politics. He is an experienced English teacher, a qualified nutritionist, a sports enthusiast, and an amateur musician. Contact him at [email protected]

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