As SUVs have become the new family car, and many millennials are living in inner cities and relying on public transport, walking or cycling, SUVs have steadily increased their share of new motor vehicle sales, and now SUV sales exceed passenger vehicle sales in Queensland (see chart below based on new ABS data released yesterday). This is also the case in WA, NT and Tasmania, although not yet at a national level, as passenger vehicle sales still exceed SUV sales in NSW, Victoria, SA and ACT. Eventually, SUV sales may dominate nationally, especially given so many stylish new SUV models, including Jaguar’s new F-Pace. High-end SUVs are suburban status symbols, and I expect their popularity will continue to grow.
The latest new motor vehicle sales data from the ABS reflect the challenging conditions that have persisted in Queensland since the end of the mining boom, with new motor vehicle sales having fallen over the last twelve months (see chart below).
While business confidence in Queensland appears to be improving, this is still to be fully reflected in the sales of vans and trucks which fall into the “other” new motor vehicle category. This category appears to be picking up more strongly in other States (e.g. see chart below).