Our take on the latest Car registrations (Mon 6 Apr 2020)
Total car registrations plummet 31%pa
New car registrations down 36%pa
Used car registrations down 28%pa
The key numbers...
- A total of 13,980 cars were registered in March 2020, down 31% from 20,277 in March 2019, as government measures to contain COVID-19 began to take their toll.
- Total new car registrations slumped 36%pa in March, as new small car registrations fell 30%pa and new large car registrations fell 38%pa.
- Total used car registrations also suffered a 28%pa drop, with used small car registrations down 27%pa and used large car registrations down 28%pa.
Monthly car registrations
Annual % changes, source: NZTA
...and our reaction
- Level 4 lockdown was in place for six days of March, and level 3 for three days prior to that, which together consumed roughly 29% of the days in March.
- This indicates that prior to lockdown, car registrations appear to not have been drastically affected by COVID-19, despite global economic activity slowing to a snail’s pace.
- Registrations in April will be hit harder as the lockdown continues at least until the 22nd, but the lasting economic effects of reduced employment, consumer spending and business profitability, have the potential to hurt the car market for an extended period, particularly new cars.
- The extent of the economic slowdown will depend largely on the duration of any government restrictions on business activity.
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