VFACTS April 2022: Market slowdown as stock shortages continue

Australian new-car sales hit reverse in April 2022, dropping more than 10 per cent below historical averages for the month.

Data released today by the Federal Chamber of Automotive Industries (FCAI) shows 81,065 new vehicles were reported sold over the 30-day period.

This represents a 12.2 per cent decline compared to the same month last year, when 92,347 vehicles were reported sold.

It is also the worst result since the COVID-19 lockdown in 2020, when just 38,322 car were reported sold in April that year – fewer than any other April since World War II.

With the catastrophic 2020 results omitted, the five-year rolling average for Australian new car sales in April currently sits at 90,482.

According to industry experts, the slowdown has been driven by severe stock shortages which continue to cripple the automotive industry.

Demand continues to significantly outstrip supply, with wait times for most manufacturers stretching between three and 14 months.

The latest estimates show the shortage of new cars will likely continue for at least the next 12 months, and could stretch to 18 months.

“This is not a reflection on the demand for new vehicles,” Tony Weber of the Federal Chamber of Automotive Industries said in a statement.

“This is a reflection on the global automotive industry’s ability to supply vehicles to not only Australia, but all markets.”

Toyota maintained its dominance in April, with 17,956 reported sales – accounting for approximately 22 per cent of the total market.

Mazda came in second place with 7378 sales, Mitsubishi finished third with 6463, followed by Kia with 6180, and Hyundai with 5552.

Utes continue to dominate nationwide, comprising four of the top 10 best-selling vehicles and three of the top five.

The Hyundai i30 and Toyota Corolla hatchbacks were the only passenger cars to make the top 10, while four SUVs made the list.

Chinese car maker MG equaled its previous best finish of seventh place on the top sellers’ list.

Meanwhile, German car giant Volkswagen dropped out of the top 10 for the third time this year, amid supply shortages and price hikes.

However, just 52 Model 3 sedans were reported as sold in April due to the brand’s process of delivering vehicles in batches quarterly (every three months).

Electric cars accounted for 1.0 per cent of all new car sales, up from just 0.3 per cent in the same month last year.

While April sales have historically been tempered by its shorter length and spate of public holidays, the 2022 results are well below par.

James Voortman – the CEO of the Australian Automotive Dealers Association – similarly told Drive it is supply not demand crimping sales.

“Conditions remain incredibly challenging … there are many frustrated customers being required to wait for the vehicles they have ordered.”

“We continue to advise customers to speak to their dealer … If you are in the market, the sooner you place your order the better.”

Data below supplied by the Federal Chamber of Automotive Industries, and compiled by Drive news journalist Alex Misoyannis.