The Federal Chamber of Automotive Industries (FCAI) released new car sales data for May, which broke all records.
In May, 111,099 vehicles were sold, exceeding last year’s record high of 105,694.
Year-to-date sales are now at 512,753, up over 55,920 over the same period last year (456,833).
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FCAI Chief Executive Tony Weber commented that another record-breaking month demonstrates the industry’s continuous strength.
“The continued growth highlights consumer confidence and the industry’s ability to meet diverse needs of Australian motorists despite current economic challenges”, Mr Weber said.
“The Australian market is one of the most open and competitive in the world which supply consumers with a wide choice of vehicle across all segments and price categories”.
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The following chart shows that new car sales continue to be dominated by SUVs, whereas passenger vehicle sales have collapsed:
Monthly sales of hybrid and plug-in hybrid vehicles increased significantly, accounting for 15.8% of the market versus 7.9% the previous year.
Battery Electric Vehicles experienced a minor increase in sales, accounting for 8.1% of new sales, up from 7.7% in the same month last year.
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While overall new car sales are booming, buyers have deserted Tesla whose sales have plummeted.
7News reported that a ‘graveyard’ of unsold Tesla cars have piled up in Port Melbourne:
“All of a sudden we’ve got a huge backlog of Teslas that aren’t moving”, Peter Anderson from the Victorian Transport Association told 7News.
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“Teslas usually come into this country pre-sold. These ones aren’t, they’re sitting here”.
The report noted that Tesla sales fell a further 20% in May after a 44% decline in April, despite recent price cuts in a bid to compete with a growing Chinese EV market.
I am not surprised that demand for Tesla vehicles has fallen. The cars looked cool when they first came out, but now they look boring and tired.
Moreover, there are legitimate concerns around insurance costs, repair costs, battery replacement costs, and charging that prevent them from becoming fully mainstream.
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