Fuel prices hit new vehicle sales

Australians held off making new vehicle purchases in March as the onward march in fuel prices kept consumers away from car yards.

Australian new motor vehicle sales fell two per cent in seasonally adjusted terms to 79,634 units in March, from a downwardly revised 81,249 units in February, the Australian Bureau of Statistics said.

This was below economists’ expectations of a 0.6 rise in new motor vehicle sales.

Commonwealth Bank senior economist John Peters said heavy fuel prices were continuing to weigh on car sales.

“It appears that the annual total of new car sales will stay just under the one million mark until there is some signs of lower petrol prices or lower new car prices,” Mr Peters said.

The Age