11/11/2011 - 11:44

Car sales not reflecting economic strength: MTA

11/11/2011 - 11:44

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Car sales not reflecting economic strength: MTA

New car sales in Western Australia were down nearly 3 per cent in October compared to the same month last year, taking the year-on-year fall in sales to 7.6 per cent.

In October, 8,974 new cars were sold in WA, 270 down on last October, for a yearly shortfall of 7,515 cars, according to the Motor Trade Association.

Motor Trade Association of WA chief executive Stephen Moir said underlying uncertainty in the broader economy was deterring new car sales.

“The sale of new cars is often considered a very good economic barometer, and if October and the past 10 months are anything to go by there’s not a great deal of confidence in the market at the moment,” Mr Moir said.

“There’s no doubt that the cost of the carbon tax and the mining tax are playing on people’s minds and that’s why they’re holding onto their money.”

Mr Moir said WA’s car sales figures, when compared to the rest of the nation, made it hard to believe the state was the country’s economic powerhouse.

“By comparison Queensland’s October sales figure was 12.9 per cent higher than in October 2010,” he said.

“Analysts keep pointing out the similarities between WA’s and Queensland’s mining and resource based economies but when you look at new car sales figures its chalk and cheese.

Mr Moir said high vehicle stamp duty rates in WA were a further deterrent to new car sales.

“New car buyers in WA are paying more stamp duty than any other state and twice and much as buyers in New South Wale, the Northern Territory, Queensland and Victoria,” he said.

“We need action now to put us in a more competitive position.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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