Manufacturing News

Local automotive industry gets a boost

The Federal Chamber of Automotive Industries has released data showing a strong upward trend in new vehicle sales during the second half of 2009.

Innovation and Industry Minister Senator Kim Carr says this is due to the Rudd Government’s Small and General Business Tax Break which delivered key stimulus to the automotive industry.

“The record new car sales figures for December show that the business tax break was the right policy at the right time and has delivered even better than expected results for the industry,” Senator Carr said.

December 2009 sales were up nearly 16 per cent on December 2008 figures and stood at a record 88, 708 vehicles.

“Businesses have been encouraged to invest in new motor vehicles and this has had an important sustaining flow-on effect to the automotive industry,” said Senator Carr.

“During the final seven months of 2009 total new vehicle sales were 584,952, outstripping the corresponding period in 2008 by 8,941 vehicles. This is almost entirely due to the increase in business sales in this period which surged ahead by 11.8% over the corresponding period in 2008.”

Australian automotive manufacturers performed well in the overall sales, with locally manufactured utility vehicles, favoured by many small businesses, up almost 22% over the June to December period from 2008.

“Australian sales have performed extremely well,” Senator Carr said.

“The positive results announced today give the automotive industry in Australia a solid platform to grow and develop and will help to ensure its future sustainability.”

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