Yearly outlook for car sales set to end on a high
Automotive sales have seen ups and downs in the past 10 months, but recent figures have set a strong predication for the end of 2015.
How will the outlook for the automotive industry progress for the rest of the year and into 2016?
Sale volumes driven by growth in SUVs
According to the Federal Chamber of Automotive Industries, sales of new cars increased by 3.6 per cent compared to the same period in the previous year. The recent release for September sales has shown positive signs for overall yearly sales which are set to hit 1.1 million. Considering the proximity to the record 1,136,227 sales seen two years ago, 2015 will most likely end on a high note for dealers and professionals in the automotive industry.
As in previous months, growth has been propelled largely by the SUV market, which saw a 15.9 per cent increase in January to October, compared to last year's figures.
Despite this trend, passenger cars are still the largest segment of the market, accounting for 43.3 per cent of sales in the past month. According to Research and Markets, Australia was the eighth largest market for this type of vehicle in the Asia Pacific region in 2014.
Sales of passenger vehicles has opened up opportunities for automotive employment in terms of tyre production. The organisation predicted that this particular sector will grow by 2.11 per cent annually from 2014 to 2019, propelled by a number of strong manufacturers in the country.
2015 Best Car program to be held back until next year
Although interest in cars is strong, Australians will have to wait longer to see the results of the Australian Automobile Association's (AAA) ranking for best cars of 2015.
A number of best car entrants had emission compliance issues.
The organisation stated that a number of entrants had emission compliance issues and could not be considered until the AAA completes an additional assessment. AAA Chief Executive Michael Bradley explained that this process will delay the results until next year, yet is necessary to maintain a high standard in the ranking system.
"[The program] is a robust information source available to the more than seven million Australians who are today members of AAA clubs and the delivery of credible and reliable information is of the utmost importance to the AAA Board," he said.
Although the delay may be disappointing to stakeholders, the stance shows the importance of controlling emissions in modern vehicles. As the industry grows, this will be a key focus for automotive suppliers to address moving forward.