New SUV sales surge – pent-up demand possibly playing a role in pick up in new motor vehicles sales

New motor vehicle sales in Queensland were 4.7% higher in February than in January in seasonally adjusted terms, driven by a surge in SUV sales, which could eventually overtake sales of passenger vehicles (see chart below based on ABS data released yesterday).

New_vehicles_Feb15

It’s likely there is an element of pent-up demand in the recent pick up in sales. Over the last ten years, while the population aged 15 and over has increased by 24%, new vehicle sales have increased by less than 6% (see chart below). Consumers may have been holding off on buying a new car due to the economic uncertainty since the financial crisis, but the need for a new car might be becoming overwhelming for many. We’ll need to wait and see if the current pick up continues before drawing any firm conclusions. A sustained pick up in new vehicle sales really doesn’t seem consistent with the short-term economic outlook.

vehicles_vs_pop_v2

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4 Responses to New SUV sales surge – pent-up demand possibly playing a role in pick up in new motor vehicles sales

  1. Katrina Drake says:

    Interesting Gene – possibly caused by the falling $AUS – families planning for more camping holidays in Australian National Parks, rather than an overseas holiday. Baby boomers opting for the Australian driving tour holidays over the European River Cruise. Australian camper trailer/caravan holidays routes are much better organised these days and offer a relaxing alternative to crowded overseas ventures – follow the festival trail, or the winery trails.

    See you at the National 4×4 Outdoors Show and Fishing & Boating Expo at the Brisbane Show grounds this weekend – doing a bit of research !
    http://4x4show.com.au/

  2. Jim says:

    Said with tongue firmly in cheek……

    ….SUV sales up amongst Gen Y and Z as they realise they will never be able to afford to buy a house…. but need something to talk about at dinner parties…..

    ……SUV sales increase in line with predictions for sea level rise…..

    …..positive correlation found between increase in obesity and SUV sales – SUVs easier to get in and out of…….

    ……..SUV sales increase significantly on the back of governments not fixing potholes…..

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