The job market might have contracted in the United States and maybe even a little here in Australia but the Australian Government’s incentives to keep the economy moving seem to have worked in June. In fact it’s been the third highest selling month on record!
The latest new vehicle sales data shows encouraging results with clear signs the market has been boosted by strong, additional demand from business sales. Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 102,847 passenger cars, SUVs and commercial vehicles were sold in June 2009.
This is the third highest selling month on-record, following 106,541 in June 2008 and 105,097 in June 2007.
â€œThe June results are encouraging and a positive sign for the new vehicle market and the Australian economy,â€ FCAI Chief Executive Andrew McKellar said.
â€œThis is the third highest selling month on-record and only the fourth time ever that sales have exceeded 100,000 units in a single month,â€ he said.
Business purchases in June were 46,679 â€“ a 12 per cent increase on a year ago.Â In particular, sales of utes, vans and light trucks have surged by 26.9 per cent compared to June 2008.
â€œThe surge in business sales is directly attributed to the Federal Governmentâ€™s business tax break and these figures provide clear evidence that this has been a very effective policy measure,â€ Mr McKellar said.
â€œOur analysis indicates that the business tax break has led to an additional 10,000 vehicles being sold over the past three months.Â That is a 10 to 12 per cent boost to business sales and a five per cent increase for the total market,â€ he said.
â€œThis is additional turnover of between three-and-four-hundred million dollars that is providing a direct boost to the car industry as well as other local businesses throughout the Australian economy,â€ Mr McKellar said.
â€œThe tax break is classic stimulus; it is giving businesses the confidence to invest in their own future and securing jobs in the industry,â€ Mr McKellar said.
Year-to-date 455,223 new vehicles have been sold, down 16.1 per cent (87,472) compared to the same period last year.
Toyota continued in the top sales position in June with 21,410 vehicle sales, ahead of Holden with 12,167 and Ford with 10,194.