Australia’s Automotive Market Update: Shifts in Consumer Preferences Amid Economic Challenges
September 2024 saw 97,020 new vehicle sales in Australia, pushing the industry past the 900,000 mark for the first time by the end of Q3—a significant milestone. Yet, despite this achievement, sales for the month reflect a 12.4% decline compared to September 2023, highlighting growing economic pressures on consumers.
As the automotive industry faces shifting consumer preferences and economic pressures, it’s more important than ever for dealerships to streamline their operations and build trust with customers. At AutoSettle, we’re proud to support dealers by providing secure, seamless transaction solutions that not only ensure faster sales settlements but also enhance transparency and confidence throughout the purchasing process. In a dynamic market like today’s, efficient and trustworthy transactions are key to driving long-term success for both dealers and consumers.
Darren Pollard – AutoSettle COO
Trends are emerging:
- SUVs and Utes Dominate: Australians’ love for SUVs and utes remains strong, with these vehicles accounting for 80% of sales. In fact, nine of the top 10 best-sellers in September were Medium/Large SUVs or Light Commercial vehicles. Meanwhile, passenger vehicles made up less than 15% of the market.
- Growing Interest in Low-Emission Vehicles: Buyers are increasingly leaning towards hybrid and plug-in hybrid models, reflecting a commitment to lower emissions and a step toward sustainability.
- EV Sales Lag Behind Expectations: Despite ample supply and new models entering the market, battery electric vehicle (EV) sales remain below expectations. Limited availability across segments like Small, Medium, and Passenger vehicles seems to be a key factor. This trend of slower EV uptake, paired with stronger hybrid sales, is consistent with global patterns where incentives for EV production and purchase are being scaled back.
With over 97,000 vehicle transactions in Australia this September alone, the potential for dealerships to enhance their operational efficiency is enormous. Each of these transactions represents an opportunity to leverage AutoSettle’s secure, automated settlement platform, ensuring quicker, error-free closings and improved cash flow. By simplifying the transaction process, we empower dealers to focus on what matters most—delivering exceptional customer experiences and growing their business in an increasingly competitive market.
Patrick McComish – AutoSettle
Top Performers: Toyota continued its reign as market leader, selling 18,110 vehicles in September, followed by Ford (8,303) and Mazda (8,201). The Toyota RAV4 led the pack as Australia’s top-selling vehicle, with 5,182 units sold, ahead of the Ford Ranger and Toyota HiLux.
Sales Breakdown by State: While certain regions like the Northern Territory (+5.6%) saw slight gains, others, including New South Wales (-16.8%) and Victoria (-16.5%), experienced more significant declines, underscoring the varied impact of economic conditions across the country.
As we head into the final quarter of 2024, all eyes will be on how these trends evolve.