Australia has a highly competitive new car market with 67 brands selling over 350 models. This high level of competition is benefiting consumers, with a vast majority of models sold in Australia for a cheaper price than other right-hand drive markets.
These benefits are supported by new analysis undertaken by the FCAI and supported by a new car market comparison report by automotive data experts IHS Automotive.
FCAI Chief Executive Tony Weber said recently, the FCAI commissioned IHS Automotive to compare new car prices in the Australian, United Kingdom and New Zealand markets.
“Using IHS Automotive’s market comparison report, the FCAI undertook further analysis to compare ‘like for like’ models, in terms of specifications; and we have released this comparison together with the IHS Automotive report, today,” Mr Weber said.
“Together, our research shows that for the vast majority of the Australian new car market, a model of like specifications is cheaper in Australia than it is in the United Kingdom or New Zealand.
“This is great news for Australian consumers, especially when you also consider the ongoing benefits included in the cost of buying a new car in Australia, such as the level of support provided by the brand (e.g. servicing), the access they have to the dealer network, and the inclusion of features specifically designed for the Australian landscape and lifestyle (e.g. Australian GPS maps, appropriate towing capacity, reversing cameras, cruise control and high-temperature air-conditioning systems).”
Mr Weber noted that the competition in the Australian market also meant manufacturers were continuously working to improve safety, security and environmental features; along with other features that Australian consumers’ demand. “This competition means that Australians are getting world-class cars at globally-competitive prices,” Mr Weber said.
A table of the FCAI’s research findings and the IHS Automotive report are available on the Vehicle price and specification comparison page.
The vehicles chosen for this analysis are representative of a range of models across different market segments. They are also models that are available in the Australian, United Kingdom and New Zealand markets.
The analysis compares the manufacturer’s list price. The comparison does not include associated costs such as stamp duty, registration and other taxes, which vary considerably from market to market.
The relative affordability of vehicles in different markets is sensitive to a number of factors, including exchange rate and tariffs. To ensure the analysis reflected the current market, the FCAI used an exchange rate of 0.55, which represents the average rate for the British pound against the Australian dollar during the first half of 2014.
Despite the fact that cars today have world-class safety, security and environmental features, new cars in Australia are more affordable than ever before due to increased competition. This affordability is also reflected in the CommSec Car Affordability index, which shows that car prices in Australia are at their lowest since the index began in 1976.
For more information, contact:
Sheena Ireland, Communications Manager
02 6229 8221 / 0458 038 555