AUSTRALIA’S car buying boom has not stopped, according to a new report by the Australian Financial Market Operator.
The agency found that the number of new vehicles sold in Australia this year has been on a long-term trend, but the pace has slowed.
That was the finding in its latest analysis of car buying activity, released on Tuesday.
Overall, the agency’s latest figures show there were 2,976,000 new cars sold in the country in May, compared to the same month last year.
And that growth rate is more than double the average of the past five years, the Australian Automobile Association said in a statement.
However, the growth is still slower than the rest of the world.
This is partly due to the relatively low demand in Australia for vehicles, and the lower prices they attract compared to other markets, according the Australian Association of Motor Vehicle Manufacturers.
“The price of vehicles in Australia remains below that of many other countries and countries around the world, including the United States and United Kingdom,” the association said.
Car manufacturers are also struggling to meet rising costs for new vehicles and a lack of demand for them, said the AAMVA.
Demand has been driven by new car leasing companies and the growing popularity of private-hire cars, it said.
The industry is also struggling with the growing number of older vehicles that are increasingly used by younger consumers, the AAMPVA said.