Fleets Drive Rebound In Vehicle Sales, Confidence

Fleets Drive Rebound in Vehicle Sales, Confidence

Improved business confidence and growing pressure to upgrade fleets will help drive a steady rebound in vehicle sales over 2010 according to a leading industry group.

Motor industry expert Nick Johnson said many fleet purchasers had held off upgrading or adding to their fleets during 2009. This had contributed to a 7.4% decline in total vehicle sales during the year.

"Fleets account for more than half of all vehicle sales in Australia so when business and fleet buyers put the brakes on the whole industry feels the effects.

"The good news is that the December 2009 figures point to a small but steady
turnaround in both sales and confidence," Mr Johnson said.

Commenting on the annual VFACTS vehicle industry summary report released today, Mr Johnson said: "There are signs that the worst of the slump is over, with passenger vehicle sales up 2.1% during December."

"We expect this trend to continue over calendar 2010 as business conditions improve and confidence builds."

Mr Johnson, who heads leading fleet solutions company FleetPartners, said a 48.5% rise in light truck sales during December was also a positive sign.

"While Federal Government tax incentives have helped drive sales of light commercial vehicles and light trucks, we are seeing a generalised pick up in orders across most fleet sectors. The notable exception is heavy vehicles like earth movers and yellow goods where sales continue to decline in the face of the credit crisis and weaker international conditions."

Mr Johnson said the the VFACTs data accorded with FleetPartners' internal economic modelling which showed considerable pent-up demand among fleet buyers.

"During the downturn many businesses opted to play it safe by extending their lease terms or delaying upgrading their fleet vehicles. This has resulted in considerable pentup demand."

"Renewed investment in fleet vehicles will be a key driver of total vehicle sales and industry confidence this year," Mr Johnson said.

For further comment or to arrange an interview please contact:

Genevieve Brannigan
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P: (03) 9642 4107
M: 0411 037 109
E: [email protected]

Beth Wilson
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P: (03) 9642 4107
M: 0403 898 880
E: [email protected]


SOURCE: Fleet Partners