Monday, May 22, 2006

Petrol prices blamed for 4WD sales decrease. 22/05/2006. ABC News Online

Ongoing high petrol prices are being blamed for a significant drop in the number of four-wheel drive vehicles sold last month.

Car sales increased for the month of April, but the number of larger cars sold continues to fall, as petrol prices rise.

The Bureau of Statistics figures show overall car sales grew by 0.5 per cent, however Sports Utility Vehicles (SUV), such as four-wheel drives, dropped by more than 1 per cent.

Westpac economist Jonathon Cavenagh says the latest figures show consumers are making very clear choices about moving away from vehicles that need more petrol.

"We initially thought that perhaps it would just take a matter of time for households to kind of get used to petrol prices at elevated levels," he said.

"But what we're really seeing now is that there's a continuing down trend in that segment of the market."

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