Lack of consumer confidence reflected in new vehicle sales – but trend towards SUVs continues

Anxious consumers and businesses remained reluctant to purchase new motor vehicles in May, with new vehicle sales 2.1% lower than in April and 4.3% lower than in May 2013 (see ABS summary). Both vehicles for personal and business use appear to have experienced drops in sales, although a plunge in demand for passenger vehicles (which I have labelled cars) has been partially offset by the continuing upward trend in demand for SUVs. While a decade ago there was one SUV sale for every three car sales, now there are two SUV sales for every three car sales. In another five to ten years time, it may be that SUV sales equal car sales.

motorvehicles

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