Our take on the latest Car registrations (Wed 6 May 2020)
Zero rental car registrations
Total car registrations down 93%pa
New car registrations down 90%pa
The key numbers...
- A total of 1,329 cars were registered in April 2020, down 93% (or 16,332 vehicles) from April 2019, as the lockdown restricted the sale of vehicles.
- This total was the least number of cars registered in one month that we have on record (data goes back to 1975). Before April 2020, the smallest monthly number of car registrations was 3,848 in December 1977.
- Of the 1,329 cars registered, 707 of these were new car registrations. The previous record low for new car registrations was 3,314 in December 1991.
Total car registrations
Annual running total
...and our reaction
- The abysmal number of registrations in April comes as no surprise, with sales at Alert Level 4 only being made to essential services, and with only three business days at the end of the month under Alert Level 3.
- We note that trading conditions under Level 3 are still relatively restrictive and are likely to keep sales levels at lower-than-normal levels.
- Once we move to Alert Level 2, the next few months’ data will give a better read on how the automotive industry will fare in the wake of COVID-19.
- Prospects aren’t great for an industry that was already coming off its 2018 peak, with a crippled tourism industry, weak business and consumer confidence, and a labour market in turmoil being the main areas of concern.
- The outlook for vehicle sales largely depends on how quickly New Zealand and the rest of the world can get back to business as usual. Alert Level 2 might offer some relief, depending on what the government announces about rules for inter-regional travel tomorrow.
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