SUVs continue dominance in new car sales shocker

author-avatar By
on September 03, 2020
SUVs continue dominance in new car sales shocker

Photo by Clément Falize on Unsplash

New figures show car sales are in their 29th continuous month of decline, down 28.8% in August, yet light SUV sales are up 12.2%.

In August 2020, just under 61,000 new vehicles were sold, down from more than 85,000 in August 2019, according to the Federal Chamber of Automotive Industries (FCAI).

In the year to date, car sales figures are also down more than a fifth compared to 2019's period.

However, light SUVs continued to gain market share, up 12.2% in sales compared to August 2019.

This was aided by the likes of the the new Suzuki Jimny (+157.1%), Nissan Juke (+15.4%) and Mazda CX-3 (+3.6%).  

SUVs now also make up 53.1% of all new vehicles sold, up 7.5% on August 2019, while passenger cars (sedans, hatchbacks) decreased 5.9%. 

These figures are largely a continuation of the trend as seen in July's figures.

In the market for a new car? The table below features car loans with some of the lowest fixed and variable interest rates on the market.

Lender

VariableNew1 yearMore details
NO ONGOING FEES
  • Unlimited extra repayments
  • Flexible repayment options
  • Can apply online
  • You could win a $1,000 fuel gift voucher. Open to customers who settle a car loan with loans.com.au. Terms and conditions apply.
NO ONGOING FEES

New - Prime Special

  • Unlimited extra repayments
  • Flexible repayment options
  • Can apply online
  • You could win a $1,000 fuel gift voucher. Open to customers who settle a car loan with loans.com.au. Terms and conditions apply.
FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
APPLY ONLINE

Car Loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedNew2 yearsMore details
NO ONGOING FEES
  • No ongoing fees
  • No early exit penalty
  • Apply online
NO ONGOING FEES

New Car Loan

  • No ongoing fees
  • No early exit penalty
  • Apply online
FixedNew2 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES
  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew1 yearMore details
No ongoing fees
  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
VariableNew1 yearMore details
APPLY ONLINE
  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
APPLY ONLINE

Electric and Hybrid Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online

*Comparison rates based on a loan of $30,000 for a five-year loan term. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 3, 2022. View disclaimer.

FCAI chief Tony Weber said the evidence was clear the effect state lockdowns has on car sales, with Victoria's new car sales down nearly two thirds.

“We’ve seen 29 consecutive months of diminishing sales in this industry, and there’s no doubt our members are feeling the pinch," he said.

"The move to commence the reopening of industry and markets, especially in Victoria, needs to start as soon as possible."

In a rare bright spot on the FCAI report, hybrid SUVs increased their sales by 358.4%, aided largely by the likes of the new Toyota RAV-4 (+140.5%).

Fully-electric SUVs also increased their sales by 23.3%. 

Luxury SUVs also enjoyed popularity, with the new BMW X6 up 800% in sales for August, and the Mercedes-Benz GLE-Class Coupe's up 81.8%.

The small Mercedes-Benz GLA-Class also increased sales by 37.7%.

In larger bodies, the Mercedes-Benz GLS-Class is also up 221.4% in the 'Upper Large' category, and the Nissan Patrol is up 13.3%.

No word yet on effectiveness of increased asset write-offs

Light commercial vehicles (vans, utes) and SUVs made up 71.5% of vehicle sales in August 2020.

However, with the small business instant asset write off quintupled to $150,000 and extended to the end of the year, it's unclear the effect it's having.

"It is really difficult to quantify what specific effect that stimulant is having on these sales," an FCAI spokesperson told Savings.com.au.

"In addition, every case of instant asset write off is different, so [it is] really hard to make a broad statement.

"Nonetheless, the industry is clearly in a challenging situation, so all support and stimulants are very welcome."


Latest Articles

author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy