is spreading to more parts of the economy, with Australia’s largest car dealership group Eagers Automotive warning that June-half profits would be 15 per cent down on last year.
warned on Tuesday that it expected sales volumes to fall by 5 per cent over the next 12 months in Australia as households cut back. Chief executive Aaron Erter said: “It’s very challenging right now in the Australian market.”Eagers CEO Mr Thornton said extra supply of vehicles from overseas manufacturers had led to more competitive conditions in the automotive retail market as car dealers tried to entice buyers with better deals.
There have been unusual dynamics in the new vehicle sector, with many buyers last year waiting more than six months for vehicles to be shipped to them after ordering. Backlogs were caused by pandemic-related supply disruptions at overseas manufacturers but deliveries are catching up fast.