It’s fair to say the last two years have been challenging for Australian Motor Dealers but finally there looks to be some light at the end of the road.
One positive out factor from 2021 is the Australian Car Sales Market bounced back from the record low sales numbers of 2020. 2021 showed an increase of 14% on 2020’s figures with total sales of 1.04 million new cars sold compared to 916,968 in 2020.
Lockdowns and economic changes continued to have a major impact on the car sales industry in 2021 and some things do look set to continue for at least the first quarter of 2022.
Let’s take a look at the 2022 Australian Car Sales Industry Insight.
2022 Car Sales Industry Insight
2022 will present many unique challenges and opportunities for Australian Motor Dealers. Some of the biggest challenges experienced in 2021 are expected to continue for at least the first quarter of 2022. To be successful, Dealers must have a clear plan in place that minimises effects challenges have on the dealership and leverages future growth.
New Car Supply Shortage
Even as Australia opened to the rest of the world, sourcing new car stock will continue to be a major challenge for Australian Motor Dealers. Due to the latest global Omicron outbreak, many manufactures have had to limit or shut down production due to staff shortages.
Adding fuel to the fire, another reason for limited new car stock is because of the global semi-conductor shortage. So when will the delay ease? Analysts are expecting the shortage to continue for the majority of 2022.
Used Car Prices
For many Australian Used Car Dealers, gaining stock has been near impossible for the last two years due to increased customer demand and escalating prices. The price rise might be good for dealers who are lucky enough to have the stock but the problem for dealers who don’t, is sourcing stock at a good price is unlikely.
Experts are predicting that used car prices are likely to remain high until mid-2022 at least.
Rise of electric vehicles
A day many thought wouldn’t come! 2021 proved to be a turning point for electric vehicles in the Australian Market. The growth of electric vehicles were astronomical in 2021, tripling the sales figures of 2020.
Electric Vehicle sales are expected to eclipse 2021’s sales figures in 2022 on the back of greater buyer acceptance, and environmental / government benefits.
Most Popular Cars in 2021
To be successful in 2022, Motor Dealers need to understand their intended customer market and have strategies in place to maximise sales.
One of the most important pieces of data for Motor Dealers is the Most Popular Cars for the previous year. Data complied in these reports indicate customer buying trends and give you a good foundation to base dealership buying decisions on.
Top 10 selling cars of 2021:
- Toyota Hilux
- Ford Ranger
- Toyota RAV4
- Toyota Corolla
- Hyundai i30
- Isuzu D-Max
- Mazda CX-5
- Toyota Prado
- Mitsubishi Triton
- MG ZS
Top 10 selling manufacturers of 2021:
- Isuzu Ute
Australia looks to be slowly starting to recover from the heavy impacts of the Covid pandemic. Australian Dealers should still expect to struggle sourcing new car stock for some time due to international production delays. Used Car prices are expected to slow mid-year, however that too could also change based on economical conditions and new car supply at the time. The best thing Australian Car Dealers can do is have a clear plan in place and look for new avenues and workarounds.
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