Tax Break Spurs Exceptional New Car Sales Result

[mcnews]

TAX BREAK SPURS EXCEPTIONAL NEW CAR SALES RESULT

Businesses taking advantage of government tax incentives to purchase light commercials and SUVs have helped the November new vehicle market rise by almost 20 per cent.

Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 85,833 passenger cars, SUVs and commercial vehicles were sold in November 2009 – an increase of 19.9 per cent (14,216 vehicles) compared to the same month last year.

“This is an extraordinary result that provides further evidence that the market and the broader Australian economy are showing signs of recovery,” FCAI Chief Executive Andrew McKellar said.

“The exceptional November figures could not have been achieved without the Federal Government’s small business tax break,” he said.

“Business sales increased an incredible 35.4 per cent during the month; spurred on by the substantial incentives available until the end of the year,” Mr McKellar said.

One note of caution the industry has as we look to the year ahead relates to the recent interest rate rises.

“There is the risk that if the banks move too early and too rapidly to increase rates the positive impact of this stimulus measure will be diminished,” he said.

The SUV segment led the market in November with an increase of 44 per cent, followed by light commercials with a rise of 38.9 per cent and then passenger cars with a 9.4 per cent increase.

Year-to-date 848,620 new vehicles have been sold, down 9.3 per cent compared to the same period last year.

Toyota remained in the top sales position in November with 19,603 vehicle sales, ahead of Holden with 11,391 and Ford with 8,868.