Sales PLUNGE for European luxury hatches in Australia but TRIPLE for prestige sedans – the surprising changes in car tastes as the economy recovers
- Audi A3 sales have plunged 77.5 per cent to just 38 from 169 a year earlier
- But sales of the Lexus IS tripled as sales more than doubled for BMW 3-Series
- CommSec said white collar professionals were spending on prestige luxury cars
The popularity of luxury hatchbacks has plunged in Australia despite the recovery in the vehicle market, while sales of prestige sedans have tripled.
Overall vehicle sales surged by 22.4 per cent in March compared with the same month in 2020 when Covid lockdowns decimated car sales, Federal Chamber of Automotive Industries data showed.
Despite the economic recovery, sales of some popular small luxury cars have dived as global supply constraints for components like semi-conductors frustrated car dealers hoping for new stock.
The popularity of small European luxury hatches has plunged despite the recovery in the Australian vehicle market as sales of prestige sedans tripled. Pictured is a BMW 3-Series wagon
The Audi A3 hatch and sedan, priced from $36,600, saw its March sales plunge to just 38 cars, down 77.5 per cent compared with 169 a year earlier.
The Volkswagen Golf, which the A3 is based on, did even worse with its sales plummeting to just 22, down 98 per cent from the 1,031 tally of the same month in 2020.
CommSec senior economist Ryan Felsman said buyers waiting for a new A3 and Golf models.
‘A lot comes down to the release dates of new models,’ he told Daily Mail Australia.
‘If you’re going to be a buyer in that market, spending $50,000 thereabouts, you probably want to get the new model and wait for that be released.’
Mercedes-Benz A-Class sales dived to 358, down 57.5 per cent from the 843 sold a year earlier.
The small and medium luxury car market has proven to be as volatile as the share market, with sales of prestige luxury sedans tripling even as those of hatches plunged.
Booming property prices, and the savings from foregone foreign holidays had encouraged higher-income earners to splash out on a new prestige cars.
‘White collar workers typically ones that have a secure job and have done quite well out of the pandemic, certainly what we have seen is individuals diverting their money towards purchasing motor vehicles,’ Mr Felsman said.
The Audi A3 hatch and sedan, priced from $36,600, saw its March sales plunge to just 38, down 77.5 per cent compared with 169 a year earlier
Lexus IS sales rose three-fold to 148, up 321.7 per cent from 46 a year earlier
‘Typically, they’d go on overseas holidays and spend a lot of disposable income.’
Lexus IS sales rose three-fold to 148, up 321.7 per cent from 46 a year earlier.
The BMW 3-Series saw its sales more than double by 260 per cent to 567 from 218.
Mercedes-Benz C-Class sales almost doubled too, climbing by 182 per cent to 364 from 200.
Mercedes-Benz A-Class sales dived to 358, down 57.5 per cent from the 843 sold a year earlier
The love for medium prestige luxury wasn’t universal, with Jaguar XE sales plunging by 82 per cent to just three from a dismal 17 a year ago.
Despite being a well-known British brand, it did even worse than Hyundai’s Genesis prestige brand which sold just ten G70 models.
In another bizarre twist, the popularity of ultra small luxury cars surged with Audi A1 sales tripling to 105 from 30 while sales of the MINI climbed 157 per cent to 107 from 68.