WA car sales slump 21% in November

New motor vehicles sales in Western Australia have plummeted 21 per cent in November compared to the previous corresponding period, according to latest data from the Australian Bureau of Statistics.

Last month, a seasonally adjusted 8678 units were sold in WA, compared to 10,435 units sold in November last year.

Over the 11 months to the end of November 2008, 108,236 units were sold, down 2.9 per cent compared to the same period last year.

Compared to other states and territories, WA recorded the biggest fall in car sales during the November month, with sales dropping 8.1 per cent from 9442 units sold in October to 8678 units, seasonally adjusted.

Passenger vehicles sold in the state dropped from 4903 units to 4545 units, seasonally adjusted, while sports utility vehicles dropped 17 per cent to a seasonally adjusted 1654 units.

In comparison, total new motor vehicle sales for Victoria dropped 6.7 per cent, Queensland fell 6.5 per cent and sales in New South Wales fell 3.5 per cent.

Nationally, new motor vehicle sales declined 5.2 per cent to 75,592 units, seasonally adjusted.

CommSec equities economist Savanth Sebastian said a slowing economy and rising unemployment were keeping potential buyers on the sidelines.

"The global car industry continues to languish and despite a more resilient domestic economy, local car dealers have not been spared the turmoil," Mr Sebastian said in a research note.

"The latest reading on car sales has highlighted the uncertain outlook for the Australian economy."

Vehicle sales backpedalled 17.8 per cent in the 12 months to November.

Mr Sebastian said he expected sales to remain sluggish in 2009, with the economic environment placing potential car buyers in a prime position to negotiate the best price.

"The slowdown in the global economy, falling commodity prices and a pullback in business short-term expenditure plans are likely to impact on vehicle sales number over the first half of 2009," Mr Sebastian said.

"Budding car buyers are likely to be inundated by cheap deals in the new year."