Car Market Update July 2021

Let’s break down what the Australian automotive market looks like at the moment, how the COVID-19 pandemic has impacted sales, and what the future of the car market looks like as we move further into 2021.

VFacts Update

The best statistics we can to analyse the Australian car market is the latest round of numbers published by the Federal Chamber of Automotive Industries, in the form of the VFacts report. The latest statistics show that there has been a huge jump in the number of new vehicles registered in the first half of 2021, after strong growth in June added 110,664 new vehicles. In total, the first six-month period of 2021 has seen 567,468 new vehicles registered, which represents a 28.3% jump over last year’s figures.

“The first six months of 2021 has seen a 28.3% in new car registrations over the first half of 2020.”

Key Car Sales and Price Updates

Which manufacturer topped the list? Well, it should come as no surprise that Japanese giant Toyota has topped the list with more than 21,000 new vehicle registrations, thanks to the popularity of the RAV4, Corolla, Camry and Landcruiser Prado models. Each month, Ford, Isuzu and Toyota compete for the overall sales total with their 4x4 Ute offerings, which actually outpace sales of typical family cars and SUVs.

For the medium-sized car market under $60,000, Toyota topped the list with the Camry (1,026 sales) compared to the Mazda 6’s 140 sales. For medium-sized cars over $60,000, the BMW 3 Series came in first place with 574 sales, just in front of the Mercedes-Benz C Class, which sold 536 units.

In terms of sports cars priced under $80,000, Ford took out the top spot thanks to its Mustang with 437 sales, while the Mazda MX-5 and BMW 2 Series rounded-out the top three with 111 and 57 sales respectively.

For medium SUVs priced under $60,000, the Mazda CX-5 took first place with more than 3,018 registrations, followed by the Toyota RAV4 (2,501) and the Hyundai Tucson with 1,496 registrations. For medium-sized SUVs priced above $60,000, the honours went to the Volvo XC60, followed by the BMW X3 and the Audi Q5. The winner of the large SUV category under $70,000 went to the Toyota LandCruiser Prado, followed by the Toyota Kluger and the Mazda CX-9.

Top 10 Best Selling Cars in Australia

1. Ford Ranger (6,058)
2. Toyota HiLux (5,412)
3. Isuzu D-Max (3,167)
4. Mazda CX-5 (3,018)
5. Kia Cerato (2,711)
6. Toyota Prado (2,610)
7. Toyota RAV4 (2,501)
8. Hyundai i30 (2,331)
9. Mitsubishi Triton (2,240)
10. Toyota Corolla (2,175)

Top 5 Best Selling SUVs in Australia

1. Mazda CX-5 (3,018)
2. Toyota LandCruiser Prado (2,610)
3. Toyota RAV4 (2,501)
4. MG ZS (2,073)
5. Toyota Kluger (1,856)

Australian Car Market Update During the Pandemic

The Australian car market is showing significant signs of recovery after the pandemic’s initial economic slowdown. This is clear to be seen by the fact that the number of new registrations has increased by nearly 30% in the first six-months of 2021 compared to 2020’s figures. The dominance of Utes like the Toyota HiLux, Ford Ranger and Isuzu D-MAX go to show that demand from working-class Australians has not significantly diminished. While the five-year average of new cars sold is still down by around 13%, Australia’s car market is showing strong signs of a recovery in the mid to long-term.

Interestingly, the rental market, which has been absolutely slammed by the pandemic, recorded an increase of 192% for vehicle purchases compared to the same time last year, while government registrations have increased 11%.

Latest Car News

• Mazda’s first battery-electric vehicle, the MX-30 SUV, is headed for Australian shores later this year, but it comes with a pretty steep price tag of $65,490 before on-road costs.
• BMW says the next-generation 2 Series and performance-focussed M2 are on their way to Australia by the end of the year.
• Toyota has added a number of features to the LandCruiser Prado model after it received a new engine last year. The Prado now comes fitted with more safety gear and styling improvements.
• Audi recently announced that from 2026, the company will introduce only electric vehicles to the international market, departing from the internal combustion engine entirely by 2033.

Will New Car Prices Drop in 2021 or 2022 in Australia?

With demand for new cars increasing, manufacturers are struggling to keep up with orders amid an uncertain economic outlook and shortages of key components like semiconductors. The early stages of the pandemic saw supply chains disrupted and factories shut down temporarily, but the most recent problem has been the global shortage of electronics, which cars utilise heavily. As a result, we don’t expect the price for new cars sold in Australia throughout 2021 and into 2022 to get any cheaper in the short-term.

What to Look For in Car Markets At This Time of the Pandemic?

One of the most important things to keep an eye out for in the Australian market amid slower deliveries and semiconductor shortages are growing waitlists. If you’ve been contemplating a car purchase for a few months now, it’s likely that the waitlist for that car could have grown from weeks into months. So, if you don’t want to wait, it would be wise to put an order in as soon as possible to avoid the back of the queue. Likewise, keep an eye open for any price changes within lineups. Most manufacturers have only implemented small price-hikes so far, but this could change if shortages persist and demand stays high.