SA: GST sales slide starts to emerge in vehicle market

AAP General News (Australia)
08-05-1999
SA: GST sales slide starts to emerge in vehicle market

Market experts say a GST inspired downturn in the Australian vehicle market is on the way
with sales starting to slip behind the record performance of the industry in 1998.

As early as January this year industry analysts forecast a significant downturn in retail
demand this year, with the slide likely to emerge in the second half.

And almost right on cue, sales in July were down 11.5 per cent compared to the same month
in 1998 after falling 6.1 per cent in June this year compared to June last year.

That puts total sales for the first seven months at just over 460,600 compared to more than
470,600 at the same time in 1998, a fall of 2.1 per cent.

The figures suggest predictions of a five per cent fall over the full year might be
correct.

In fact the Federal Chamber of Automotive Industries says it now believes sales for the 12
months will reach only 760,000, down almost six per cent on the record 807,669 last year.

And the industry remains concerned that the impending tax changes will see buyers begin to
desert the market as they wait for the likely savings in the near future.

AAP RTV tjd/wz/jn

KEYWORD: MOTOR SALES (ADELAIDE)

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