The new car market experienced a crunch in September, with sales slumping 12.4% to 97,020 units compared to the same month in 2023, and down around 1% from August.
The September figure was the lowest since last December, when approximately 84,000 new vehicles were sold.
Including sales by Tesla and Polestar—companies that are not reported with others—the drop was 9.4%, bringing the total to 99,881 units.
According to figures from the Federated Chamber of Automotive Industries (FCAI), sales in all major categories fell, with the total just under the 98,000 units sold in August.
Compared to September 2023, sales in the sports utility vehicle (SUV) sector fell nearly 12%, passenger car sales slumped more than 22%, and the light commercial sector saw a decrease of 9.4%.
There are signs that sales will continue to weaken as we move toward the end of the year, although they typically perk up in December with deeper-than-usual end-of-year sales to clear unsold stock.
September’s figure was 19% down from the record of over 120,000 units sold in June, which was boosted by extensive end-of-financial-year sales. Since then, sales have gradually slipped below 100,000 per month.
The Chamber’s data shows that sales in the Australian Capital Territory fell 23.1% compared to September 2023, totaling 1,388 units; New South Wales experienced a nearly 17% decline to 29,943; the Northern Territory rose 5.6% to 910; Queensland dropped 8.3% to 21,481; South Australia decreased by 3.8% to 6,420; Tasmania fell 11.1% to 1,754; Victoria saw a sharp decline of 16.5% to 24,573; and Western Australia’s sales eased just 0.2% to 10,551.
Sales of battery-powered electric vehicles (EVs) fell again, but the figures indicate a growing preference for plug-in hybrids—different from the regenerative hybrids marketed by Toyota, which also saw an increase. Sales of hybrids were up 34.4%, while sales of plug-in hybrids (PHEVs) leapt 90%.
In contrast, sales of electric vehicles (EVs) were down 27.2%, primarily due to a significant slump in Tesla sales.
FCAI Chief Executive Tony Weber noted that while the sales results to the end of September were solid, the decrease compared to the same month last year indicated challenging economic times.
“During the early part of the year, we witnessed record numbers,” he said. “However, the September results show that the state of the economy is impacting purchasing intentions.”
The share price of leading listed car dealer Eagers Automotive reflects the slide over the last few months, with shares down 24% year-to-date; however, they have shown stronger performance in the past month, increasing by 2.3%.
Shares in Peter Warren Automotive, another listed car group, are down more than 30% year-to-date and over 9% in the past month as investors anticipate that the downturn will worsen.
Weber remarked that EV sales were again weak last month.
“This is in spite of a strong supply of EVs and the introduction of several new brands and models into the Australian market. It is important to note that EVs are currently concentrated in limited market segments, such as passenger medium and small, and medium SUVs.”
He added that with one quarter remaining in the sales year, some clear trends regarding consumer preferences have emerged.
“First, SUVs and utes remain the vehicle of choice for around 80% of new car buyers,” he said. “Nine of the top ten vehicles sold in September were in the medium or large SUV or light commercial segments. In contrast, the passenger segment accounted for less than 15% of the market.
“Second, across the board, customers are showing a willingness to transition to lower-emission vehicles, with sales of hybrids and plug-in hybrids continuing to increase.”
Toyota is the major seller of regenerative hybrids, leading the market with 18,110 units sold, although this figure is down more than 13% from the same month a year ago.