Demand outstrips supply as material shortages affect new car sales

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on May 05, 2022 Fact Checked
Demand outstrips supply as material shortages affect new car sales

New data revealed 81,065 vehicles were sold in April, a sharp decrease of 12.2% on figures reported for April 2021.

The Federal Chamber of Automotive Industries (FCAI) 'VFACTS' report released Wednesday revealed the 81,065 new vehicles sold in April represents a drop of 11,282 vehicle sales for the month compared to the year prior. 

Coming off figures of 101,233 new vehicle sales for March, sales were down across all states and territories.

The VFACTS report revealed state-by-state sales statistics compared to April 2021, noting:

  • Northern Territory sales decreased 4.8% with 848 vehicles sold.
  • South Australian sales decreased 6.2% with 5,459 vehicles sold.
  • Tasmania sales decreased by 7.9% with 1,466 vehicles sold.
  • Victoria sales decreased by 11% with 21,339 vehicles sold.
  • Queensland sales decreased 11.2% with 17,424 vehicles sold.
  • New South Wales sales decreased 12.7% with 25,432 sold.
  • Australian Capital Territory sales decreased 14.9% compared with 1,201 vehicles sold.
  • Western Australia sales decreased 20.4% with 7,896 vehicles sold.

FCAI Chief Executive Tony Weber said the sales drop is not a sign of a lack of demand for new cars, rather a reflection of a broader global trend of insufficient supply.

"Automotive manufacturers continue to suffer from a shortage of microprocessor units which is impacting their ability to ramp up production to pre-pandemic levels," Mr Weber said. 

"Covid-19 continues to impact manufacturing and supply, particularly where factories have been forced to close and shipping operations are yet to fully recover - reflected in the extended delivery times for new vehicles."

EV sales remain strong with Polestar claiming April's pole position

Electric vehicle sales continue their trend of growth based on results recorded last year, with the report revealing 866 were sold in April climbing more than 300% when compared to the same period last year. 

To date there have been 7,618 electric vehicles sold so far in 2022, continuing the trend of a 600% increase across the same four-month period from 2021.

Battling their own supply woes, Tesla deliveries were reduced to a trickle in April with the company recording just 52 sales nationwide. 

EV competitors took advantage, with Polestar becoming the front-runner for April recording 93 sales.

See Also: Top Five Affordable Electric Cars in Australia


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    Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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