Australians bought more new cars in June than in any month on record, and a growing share of them plugged in rather than filled up.
June is normally a big month for car sales, but this year is bigger than usual.
The Federal Chamber of Automotive Industries reports that its VFACTS tally for June set an all-time monthly record for new-vehicle deliveries, topping the previous record set in 2017.
A monthly sales record in a year of rate pressure is curious. Households have been told for two years that money is tight. But that didn’t stop the nation from going out and buying more cars than they ever have in a single month.
EOFY and fleet buyers typically keep dealers busy in June, but a near-decade high is worth taking another look at. So what’s in everyone’s driveways now?
BYD, which sold its first car in Australia in 2022, is now moving serious volume. Its local arm has been posting month-on-month delivery gains and widening its model range beyond the Atto into utes and larger SUVs. The Shark plug-in ute in particular has pulled the brand into a part of the market that used to belong to Toyota and Ford.
Tesla is the other half of the story. The Model Y remains the best-selling electric vehicle in the country, but Tesla’s monthly numbers swing hard with shipping schedules.
But legacy brands are not standing still. Toyota is leaning on hybrids across almost its entire range. Others are cutting prices on their electric models to hold ground against the Chinese newcomers, who are undercutting them on sticker price and matching them on features.
One record month doesn’t give us any real read on whether Australian households are stretched or comfortable when it comes to their budget. A car is a considered purchase, often a financed one, and June is flattered by the tax calendar.
What we can tell, however, is that getting around on the road is going to look different going forward. Instead of a sea of Ford Rangers, Toyota Hiluxes and various hatchbacks in the carparks of Australia, you’ll see a lot more Chinese competitors taking up space. Especially near limited charging infrastructure.
The real question is whether this shift to cheaper Chinese EVs can hold now that the Federal tax incentive driving them off the lots is winding up.
Important information: This article contains general information only. It does not take into account your objectives, financial situation or needs. Before acting on any information, consider its appropriateness having regard to your own circumstances and seek professional advice from a licensed financial adviser.
