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New car buyers are reaping rewards from the strongest Australian dollar in more than a decade.
The exchange rate has gone over 100 yen for the first time in 15 years and the dollar is also running strongly against the US dollar, British pound and the Euro.
Government figures show car prices have declined in recent months, and surging demand is likely to take sales beyond one million vehicles for the first time this year.
The losers, a growing concern, are exports such as Holden Commodore and Toyota Camry.
“The Aussie car buyer has never had it so good, cars have never been better value,” Federal Chamber of Automotive Industries president John said.
“Importers are taking advantage of the strong Australian dollar to cram a lot more features into cars.
“At the same time, the market is impacted almost monthly by some new model or brand.”
Conomos said the exchange rate is allowing importers to hold prices while boosting value at all levels.
He believes the number of importers is a bonus for buyers.
“We have around 55 companies in this country, compared with only 35 or so in the US,” he said.
“I don't know any other country that has a 70 per cent share held by imports, and still rising, while retaining a local manufacturing industry.”
He said Free Trade Agreements are boosting value as buyers also benefit from reducing import duties.
“While the Australian market is under such immense competition, I see no reason why sales will not drive beyond one million vehicles this year,” Mr Conomos said.
“Consumer confidence has never been higher. The election in New South Wales has had no bearing on demand, the threat of interest rates has had no effect and the Federal Government looks positive.
“Consumers are the beneficiaries and it will stay that way for more than a year. Most car companies will be looking to expand their volume.”
The sales chief at GM Holden agrees with the FCAI boss, but Alan Batey said competition is still tough.
Batey said Commodore and engine exports are being impacted by the strength of the dollar.
“Value for money in this market is very, very important,” he said.
“The dollar-yen exchange rate is at the toughest we've seen in a decade. It's a very, very tough market.”
Ford Australia president Tom Gorman worries about the longer-term impact of the strong dollar.
“Being an exporter from Australia at 81.5 cents to the US dollar today for anybody is difficult,” he said.
“At the present exchange rate, for you to keep your margins where you want them to be, it's very hard to be an exporter. That is going to be factor into a lot of future decisions.
“Both Toyota and Holden have very big export businesses here. It's the vast majority of Toyota volumes.
“At 81.5 cents to the US dollar and the equivalent relationship with other currencies around the world, I'm not so sure how attractive those export opportunities are.
“I think that's another big issue for us to come to grips with.”
