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).
It would be curious to know who is buying these SUV’s. Are they asset rich baby boomers, young smashed avocado breakfast eaters who have given up on home ownership, soccer mums, or other? It is a sign of confidence that more cars are being bought, particularly the more expensive SUV’s, but it could also be a sign households are willing to go back to high consumption days prior to the GFC rather than be more frugal. If high car consumption is a sign of low future household savings that may mean higher current account deficits and greater foreign debt. I’m sticking with my 15 year old Nissan Pulsar personally…
Haha, Bernard Salt certainly got himself into trouble with that smashed avocado eaters comment, didn’t he? Thanks for the comment, Alistair.
On Wed, Oct 19, 2016 at 12:21 PM, Queensland Economy Watch wrote:
I suspect Bernard was suffering “media attention deficit disorder” and needed to make a sensationalist comment to get his name to the masses. He did say it was a Friday throwaway comment the following day on ABC radio. On reflection it did the job and he’s back in demand for interviews. He may even pick up a few more paid consultancy gigs from it. Clever man.
What’s your next sensationalist media comment Gene?
Apologies if this doubles up as this post did not reply before.
As these SUVs produce a greater proportion of GHGs are they paying for the social costs or do these externalities just get passed on? This news is disturbing.