04 Feb 2021
Posted in Automotive
Positive economic growth and better private consumption to drive auto sales in Australia, says GlobalData
Following the news from the Federal Chamber of Automotive Industries (FCAI) that Australia motor vehicles sales grew by year-on-year 11.1 % in January 2021;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading research and consulting company, offers his view:
“Australia has successfully combated the COVID-19 pandemic and its negative economic impact in 2020. The automotive industry, which was under depression for the first three quarters of 2020, showed positive signs in the last quarter with sales volumes growing both year-on-year and month-on-month basis and January 2021 continued the same trend.
“The growth is attributed to the pent-up demand, positive consumer confidence, easing of cross-border movements and growth in private buyers in the country. However, other segments, including the sales of vehicles to business buyers, sales to government and rental remained weak during the month.
“The outlook for new vehicle sales is expected to be positive in 2021 and there are several reasons to believe. Australian economy is faring better than the previous year and private consumption is expected to improve this year. The demand for SUVs is high, especially from the private buyers and the inflow of new models is set to supplement the growth. Chinese SUV makers, including leading brands such as MG and LDV, increased their market position in January, surpassing Germany and the US. New launches will remain a key factor to 2021 growth. Additionally, support to the auto sector from the government and full re-opening of international borders and growth in domestic and inbound tourism will support the sales of new vehicles in Australia.”