Market Trends of Australia Used Car Industry
The Online Sales Channel Segment is Expected to be the Fastest Growing Segment Between 2024 and 2029
Internet penetration in Australia is relatively high, with the country having one of the highest rates of internet use in the world, primarily attributed to the availability of high-speed internet at affordable prices. These characteristics are gradually being used by used car owners to advertise their vehicles and share information about their vehicles online. This has improved the sales process and allows more parties to sell and buy autos.
- In 2023, the number of mobile internet users in the country stood at nearly 90.9% of the population. The availability of high-speed broadband networks, the widespread adoption of mobile devices, and the growing reliance on digital technologies for communication and commerce have all contributed to this trend.
Many multi-brand and independent dealerships are expected to develop their online presence to participate in the online used vehicle market. Some dealerships are investing in their websites and Instagram pages in addition to advertising used car inventory on internet marketplaces. Used vehicle platforms are likely to focus on establishing a transactional marketplace to enable 100% online end-to-end transactions without having to visit showrooms from the comfort of their homes.
Online platforms have been increasingly growing because they are connecting various vehicle sellers and groups like independent dealers and private owners with customers. These platforms are expanding their presence in the region to increase their market share and revenues. For instance,
- In May 2022, Australian online used car platform Carma raised AUD 52 million (USD 36.83 million) in series A funding to witness a high growth rate in its sales and revenue.
The Gasoline Fuel Type Segment is Anticipated to Hold the Highest Market Share in the Market
Demand for gasoline-powered vehicles is seen showcasing positive impacts in Australia, yet the segment is experiencing the biggest challenges for its longer-term growth potential. Australia is on the verge of adopting electric vehicles to restore its dependency on cleaner and greener fuels. This shift shall reduce the demand for petrol-based vehicles between 2024 and 2029. However, in the short term, demand for gasoline-powered vehicles remains on the positive side, showcasing strong demand in sedan and SUV segments.
Further, the cost difference between a liter of diesel and a liter of gasoline is significantly less, eliminating the financial benefit diesel automobiles were thought to provide. Diesel automobiles are no longer as attractive as they once were due to rising upfront costs and high fuel prices. This is despite the fact that diesel engines are more fuel-efficient than gasoline ones.
According to new data, Sydney residents are not on track to meet the state's 2030 or 2050 net-zero targets. The committee for Sydney, an urban policy think tank led by an influential body of business leaders and infrastructure experts, has said radical action is needed to cut emissions.
- Sydney is currently the contributor of 36% of all NSW emissions; the plan would reportedly cut the city's emissions by 43% by 2030 and 80% by 2050. In August 2022, The Committee for Sydney announced its plan to ban the sale of new petrol and diesel cars by 2027 in a bid to reach net zero emissions by 2050. 00% of passenger car sales will need to be EVs in 2027, leading to approximately 850,000 passenger EVs on the road by 2030. However, over the long term, the transition towards eco-friendly machinery might hamper the growth rate.
