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Business Takes Advantage of Tax Break on New Vehicles

There is positive news in the latest vehicle sales figures with increased business purchases providing a much-needed confidence boost to the market.

Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 75,439 passenger cars, SUVs and commercial vehicles were sold in May 2009 – down 14.9 per cent (13,201 vehicles) compared to the same month in 2008.

“The May figures provide a tangible indication that new vehicle sales have stabilised and indeed there are even grounds to suggest we may see signs of improvement in coming months,” FCAI Chief Executive Andrew McKellar said.

Sales to business buyers in May were only down 7.2 per cent on a year ago.

“There is clear evidence that the Federal Government’s business tax break is providing the market with a renewed sense of optimism and confidence,” Mr McKellar said.

“The business tax break is proving extremely effective, providing a much needed boost to vehicle sales and stimulating economic activity,” he said.

“Vehicle brands have been promoting this incentive heavily in recent few months and since the legislation has been passed there has been a perceptible increase in business sales,” he said.

Year-to-date 352,374 new vehicles have been sold, down 19.2 per cent compared to the same period last year.

Toyota continued in the top sales position in May with 15,481 vehicle sales, ahead of Holden with 9,177 and Ford with 8,440.

For further information contact:
Sheena Ireland, Communications Manager
P: 02 6229 8221
M: 0458 038 555
E: sheena.ireland@fcai.com.au