Car market hit by supply issues

Demand for new vehicles is outstripping supply, according to the latest monthly sales report from the Federal Chamber of Automotive Industries.

A total of 94,383 new vehicles were sold in May, which was 6.4% fewer than the year before.

FCAI chief executive Tony Weber said the reduction was due not to falling demand but because global supply chains are struggling to recover from pandemic impacts.

“The global automotive industry continues to be plagued by a shortage of microprocessor units and shipping delays. This issue is not unique to Australia," he said.

“Car makers continue to report high demand across dealer showrooms and online marketplaces. Pandemic interruptions continue to impact manufacturing and conflict in Ukraine has disrupted vehicle component supply. Monthly sales figures are also dependent on shipping arrivals which continue to be uncertain.”

The top five models in May were:

· Toyota Hi-Lux (5,178 sales)

· Toyota RAV4 (3,925)

· Ford Ranger (3,751)

· Toyotas Corolla (3,310)

· Toyota Landcruiser (2,667)