Markets Live, Wednesday, March 4, 2020

Markets Live, Wednesday, March 4, 2020

Australia’s new car market is in recession, and a deep one at that. New figures from the Federal Chamber of Automotive Industries (FCAI) revealed new car sales fell 8.2 per cent in February compared to the same period a year earlier, continuing the downtrend that’s been in place for close to two years.

“The Australian new vehicle market has now seen a downturn each month for the past 23 months. In economic terms, a recession is declared after two quarters of negative growth – and this industry has now seen seven consecutive quarters of negative growth,” said FCAI CEO Tony Weber.

“There is no doubt that this is an extraordinarily difficult time for the automotive industry.”

Mr Weber said a number of adverse factors have directly affected consumer confidence over 2018, 2019 and the beginning of 2020, resulting in tough time for the industry.

“These include political and financial uncertainty, environmental factors such as floods, drought and bushfires, and more recently, the growing concerns regarding a global pandemic from the coronavirus,” he said.

Toyota remained in top spot for sales in February, followed by Mazda and Hyundai.

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