New car supply – what’s the outlook in 2023?
Market conditions are changing in 2023 with inflation and interest rate rises softening demand from consumers, which might allow businesses to secure the new cars they need. However, the issues that have been impacting the global supply chain since the pandemic are still causing delays for some manufacturers.
A deeper dive into the global supply chains shows why some brands had more stock than others in 2022. The semi-conductor shortage initially impacted everyone but as supply recovered the war in Ukraine disrupted factory and parts production in Europe, which created opportunities for brands manufacturing in Asia. This trend should continue in 2023 with Chinese brands offering more models in the popular SUV segments.
Popular fleet models
The Toyota RAV4 had a stellar year in 2020 with the introduction of the hybrid powertrain and became an instant favourite with fleets large and small. Supply issues caused sales to dip in 2021 and 2022 and delivery times were pushed out, which will continue in 2023.
Demand is still strong for the Toyota Hilux and Ford Ranger dual cab utilities. Last year Ford successfully managed the Ranger model changeover and only experienced a small dip in sales. With strong supply, and the halo of the new model, some industry sources are tipping the Ranger to beat Hilux for the top spot in 2023.
An exciting new fleet model coming in 2023 is the Hyundai Kona. It’s the first vehicle from Hyundai to be designed as an electric car and then adapted to accommodate a petrol and hybrid powertrain. The new model is bigger than the outgoing one and the hybrid option will create an alternative for fleet buyers looking to reduce emissions.
Electric cars
The Fringe Benefits Tax (FBT) Exemption on electric vehicles (EVs) and plug-in hybrid vehicles (PHEV) introduced last year by the Federal Government changes the economics on passenger EVs for businesses. The savings in FBT are significant and could allow many organisations to buy electric vehicles in 2023 without breaking the bank.
Delivery vans
Van sales are expected to be strong in 2023 with some new models being introduced by Chinese and European brands. The Toyota Hiace has enjoyed the number one position for many years and should keep it in 2023, thanks to the support from large fleets. However, small businesses and owner drivers will continue to favour European vans for driver comfort and Chinese vans for value.
After the success of the LDV Deliver 9 large van, LDV will be launching a medium sized van in Australia in 2023. There are also a number of electric vans being launched in 2023 from Mercedes-Benz, Renault and Peugeot.
Trucks
The new truck market achieved record sales in 2022 with strong supply in each segment. Demand is expected to continue with order books being filled quickly for 2023. A hurdle still to overcome in the supply chain for new trucks is the manufacturing of truck bodies. Specialised body builders have been impacted by increased demand and skilled labour shortages with many fully booked until 2024.
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