Car dealers say that shortages of new car stock caused by COVID-related production disruptions overseas mean they don’t know when there’ll be enough vehicles to meet the demand.
A north Queensland dealer says inquiries from potential customers are “through the roof,” but it’s not being allocated enough stock from distributors to convert inquiries into sales .
The dealership would normally hold 400 cars, but its allocation is about 30 to 40% down on pre-COVID levels, and year-on-year new vehicle sales are down significantly.
“We’re hearing there are some dealers around the country that don’t actually have a new vehicle in stock to show a customer,” he told ABC News.
Australian Automotive Dealer Association (AADA) chief executive James Voortman says stock shortages vary by manufacturer.
“I think the chief determining factor was where was that car manufactured and if it was manufactured in a country or in a region that has been affected by COVID-19 to the extent that a factory has had to close or had supply disrupted.
“I’ve heard from one dealer in an extreme situation where he’s only been able to secure 20% of the same level of stock he had a year ago,” ABC quoted him as saying
He says supply problems became apparent around the middle of last year when initial lockdowns ended and people became interested in buying cars.
There’s plenty of demand with little overseas travel and people looking to buy a car to travel domestically. “People are also shying away from public transport and looking for a car,” he told ABC.
“It’s incredibly frustrating, and you have to remember this industry has been doing it tough for some time.
“New car sales fell in 2018, 2019; and in 2020 they fell by the largest margin on record, so our members are desperate to be able to trade.
“Unfortunately there’s not much we can do when all of the passenger cars…sold in Australia are manufactured overseas.”
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