Car sales slump as fuel price soars
04 May 2006
By ADRIAN BATHGATE
After defying spiralling petrol prices for the first three months of the year, car sales slumped well below 2005 levels during April.
There were 5109 new cars registered in April, 7 per cent down on the same month last year. Used imports took an even bigger hit, dropping 24 per cent to 9805.
April saw petrol prices hit record highs, with the price cracking $1.70 a litre for the first time last week. Petrol finished the month 14 cents a litre higher.
Sales figures for new cars for the four months of 2006 show large car sales are down 10 per cent, while smaller cars are up 22 per cent. Sales of four-wheel-drives are down 1 per cent, but have been buoyed by the introduction of more fuel-efficient models.
New car sales for the four months to April were 24,482, still 4 per cent ahead of last year.
Industry commentators have attributed the strong start to 2006 to consumers bringing forward their car buying plans, either to beat price rises as the dollar falls, or to move to a more fuel-efficient model.
Mr Kerr said prices had begun to rise in response to the Kiwi dollar.
People are still trading four wheels for two, with motorcycle sales up 50 per cent in the first four months of 2006 compared with 2005.
Mr Cuming said Kiwi motorists were looking at their motoring habits more than ever before because of rising petrol prices, vehicle emissions and climate change. "People are very aware of the cost of motoring now."
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