1 00:00:00,440 --> 00:00:03,880 Speaker 1: Jack two ninety two ninety two is the text number. 2 00:00:03,880 --> 00:00:05,920 Speaker 1: If you're going to flick a message this afternoon, don't 3 00:00:05,920 --> 00:00:08,280 Speaker 1: forget that standard text costs apply. You can email me 4 00:00:08,320 --> 00:00:10,520 Speaker 1: as well if you like Jacket news talks. He'db dot 5 00:00:10,560 --> 00:00:13,600 Speaker 1: co dot NZ. The Motor Vehicle Industry or the Motor 6 00:00:13,640 --> 00:00:17,360 Speaker 1: Industry Association rather is warning more car dealers are going 7 00:00:17,400 --> 00:00:20,640 Speaker 1: to go bust after the fifth straight month of slow 8 00:00:20,840 --> 00:00:24,759 Speaker 1: new car sales. This year, the sales are thirteen percent lower, 9 00:00:24,800 --> 00:00:27,760 Speaker 1: so that's about eight thousand fewer sales than last year 10 00:00:27,800 --> 00:00:30,960 Speaker 1: and almost twenty five percent lower, so just over sixteen 11 00:00:30,960 --> 00:00:33,920 Speaker 1: and a half thousand fewer sales than in twenty twenty two. 12 00:00:34,680 --> 00:00:39,080 Speaker 1: Motor Industry Association Chief executive Amy Wiley is with us. Now, 13 00:00:39,159 --> 00:00:42,479 Speaker 1: Hi Amy, Hi Jackie. Why are we seeing such a 14 00:00:42,520 --> 00:00:43,839 Speaker 1: significant drop in sales. 15 00:00:45,400 --> 00:00:48,120 Speaker 2: Well, we are in economic recessionary times, and I'm sure 16 00:00:48,120 --> 00:00:50,800 Speaker 2: it's not just limited to the sales of new cars 17 00:00:50,800 --> 00:00:53,880 Speaker 2: and SUVs, but it's probably across the board. But given 18 00:00:53,920 --> 00:00:56,920 Speaker 2: that we can measure based on monthly registrations how well 19 00:00:56,960 --> 00:01:01,720 Speaker 2: we're going, I think it's both at economic slower economy 20 00:01:01,760 --> 00:01:04,440 Speaker 2: and higher interest rates slowing down the number of vehicles 21 00:01:04,440 --> 00:01:08,240 Speaker 2: being sold, but also consumer demand has shifted too, and 22 00:01:08,480 --> 00:01:11,600 Speaker 2: the types of vehicles that kibis want the year of change. 23 00:01:11,800 --> 00:01:14,080 Speaker 1: So are you seeing a drop in sales when it 24 00:01:14,120 --> 00:01:18,480 Speaker 1: comes to secondhand vehicles. 25 00:01:16,920 --> 00:01:18,560 Speaker 2: Not to the same extent as new. 26 00:01:19,000 --> 00:01:22,199 Speaker 1: Se that's interesting a So if it is a pinch, 27 00:01:22,720 --> 00:01:24,640 Speaker 1: then maybe it's been felt at the higher end of 28 00:01:24,680 --> 00:01:25,399 Speaker 1: the market, you think. 29 00:01:26,640 --> 00:01:28,880 Speaker 2: Yeah. So in May we're down about thirty three percent, 30 00:01:28,920 --> 00:01:30,720 Speaker 2: so about a third on new vehicles, and I think 31 00:01:30,720 --> 00:01:32,440 Speaker 2: it's down about nine percent used. 32 00:01:32,760 --> 00:01:36,840 Speaker 1: Wow. Did the end of the of the clean car discount, 33 00:01:36,880 --> 00:01:39,640 Speaker 1: the EV subsidy, U tax, whatever you want to call it, 34 00:01:39,680 --> 00:01:41,440 Speaker 1: have anything to do with the change in sales? 35 00:01:42,680 --> 00:01:45,720 Speaker 2: Yes, I think it is policy driven. With the end 36 00:01:45,760 --> 00:01:48,240 Speaker 2: of the clean car discount and with the introduction of 37 00:01:48,320 --> 00:01:52,240 Speaker 2: road user charges. Just recently, we're seeing demand for eva's 38 00:01:52,240 --> 00:01:56,760 Speaker 2: a slump right well, down fourteen percent this year, and 39 00:01:56,760 --> 00:01:59,760 Speaker 2: we're seeing that for people who are still buying new 40 00:01:59,760 --> 00:02:02,240 Speaker 2: car they've decided to buy petrol equivalents instead. 41 00:02:02,440 --> 00:02:05,280 Speaker 1: Yeah, that's interesting. So what do you think is going 42 00:02:05,320 --> 00:02:07,280 Speaker 1: to be the end result of all this? So things 43 00:02:07,320 --> 00:02:08,400 Speaker 1: are going to get much worse. 44 00:02:09,720 --> 00:02:14,000 Speaker 2: Well, with the government's budget announcement last week and listening 45 00:02:14,040 --> 00:02:16,120 Speaker 2: to some of the key economists in the country, it 46 00:02:16,200 --> 00:02:18,440 Speaker 2: sounds like we're in for probably a bit of a 47 00:02:18,480 --> 00:02:21,160 Speaker 2: tough quarter three and quarter four, but for hopefully and 48 00:02:21,360 --> 00:02:24,280 Speaker 2: hopefully businesses can ride out the next six months and 49 00:02:24,600 --> 00:02:26,320 Speaker 2: we'll see some improvement in twenty twenty five. 50 00:02:26,360 --> 00:02:28,280 Speaker 1: I think, is anyone doing well. 51 00:02:31,040 --> 00:02:35,080 Speaker 2: Well? It's hard to answer that question. Actually, I guess 52 00:02:35,120 --> 00:02:38,480 Speaker 2: people selling hybrid vehicles probably are, right, that's where you know, 53 00:02:39,000 --> 00:02:41,320 Speaker 2: for cars being sold at the moment, there's a huge 54 00:02:41,320 --> 00:02:45,639 Speaker 2: demand for hybrids, mild hybrids, petrol hybrids, I guess they're 55 00:02:45,680 --> 00:02:49,160 Speaker 2: doing well. But as for everybody else in industry, given 56 00:02:49,200 --> 00:02:52,519 Speaker 2: that evs were in hot demand last year and they've 57 00:02:52,520 --> 00:02:55,160 Speaker 2: probably got them all in stock right now, I'd say 58 00:02:55,160 --> 00:02:56,680 Speaker 2: it's pretty tough going. 59 00:02:56,840 --> 00:02:59,360 Speaker 1: Yeah, that's interesting. So why do you think hybrids are 60 00:02:59,400 --> 00:03:01,960 Speaker 1: doing well when all other parts of the market are down. 61 00:03:03,639 --> 00:03:06,040 Speaker 2: Mild hybrid's, petul hybrids don't have a road user. 62 00:03:05,919 --> 00:03:10,320 Speaker 1: Charge, right, and that's it, And I think, yeah. 63 00:03:09,800 --> 00:03:13,600 Speaker 2: I think he's just the voting with what they're buying, right, 64 00:03:13,680 --> 00:03:15,520 Speaker 2: and looking for things that they don't have to have 65 00:03:15,600 --> 00:03:18,760 Speaker 2: extra admin or extra costs. Yeah, and at the moment 66 00:03:18,760 --> 00:03:20,160 Speaker 2: that that's where that looks. 67 00:03:20,480 --> 00:03:22,920 Speaker 1: So let's flesh us out a little bit from here. Right, 68 00:03:22,960 --> 00:03:24,400 Speaker 1: it's going to be a tough winter. I think we 69 00:03:24,440 --> 00:03:27,920 Speaker 1: can all appreciate that. I see Infometrics is now pushing 70 00:03:27,960 --> 00:03:30,760 Speaker 1: out its forecast as of today, suggesting that interest rate 71 00:03:30,800 --> 00:03:34,080 Speaker 1: cuts might not be until February next year. If we 72 00:03:34,160 --> 00:03:38,600 Speaker 1: are in really difficult economic times until say February March 73 00:03:38,600 --> 00:03:41,160 Speaker 1: of next year, we don't see rate cuts until that point. 74 00:03:41,400 --> 00:03:44,800 Speaker 1: What will be the overall impact on the motor vehicle 75 00:03:44,880 --> 00:03:45,720 Speaker 1: selling industry. 76 00:03:48,400 --> 00:03:50,760 Speaker 2: Yeah, it's a tough time to I feel sorry for 77 00:03:50,800 --> 00:03:53,320 Speaker 2: importers and distributors and dealers at the moment. It's tough 78 00:03:53,360 --> 00:03:55,720 Speaker 2: because they've got a number of policies they've been juggling. 79 00:03:56,000 --> 00:03:59,640 Speaker 2: So in the new vehicle industry, they order vehicles six 80 00:03:59,680 --> 00:04:03,040 Speaker 2: to twelve months in advance, so the cars arriving now 81 00:04:03,040 --> 00:04:05,320 Speaker 2: they ordered a long time ago. We demand would have 82 00:04:05,320 --> 00:04:07,720 Speaker 2: looked it very different. But not only that, they've got 83 00:04:07,720 --> 00:04:11,640 Speaker 2: the Clean Car Standard and that that penalizes importers for 84 00:04:11,680 --> 00:04:14,320 Speaker 2: bringing in higher emission vehicles or gives credits for lower 85 00:04:14,320 --> 00:04:16,560 Speaker 2: emission vehicles. So at the moment they're trying to balance 86 00:04:16,600 --> 00:04:20,200 Speaker 2: the supply and the demand when thus applying a product 87 00:04:20,240 --> 00:04:25,960 Speaker 2: to a market, and it's tough. Previously, what I've heard 88 00:04:26,000 --> 00:04:28,400 Speaker 2: from from some of our members is that it feels 89 00:04:28,400 --> 00:04:31,640 Speaker 2: harder right now than it did during the GFC, And 90 00:04:31,680 --> 00:04:34,000 Speaker 2: I think the reason for that as were that we're 91 00:04:34,040 --> 00:04:38,960 Speaker 2: in higher interest rates and economic recessionary times. But we've 92 00:04:38,960 --> 00:04:42,000 Speaker 2: got new policies now too, and we've got climate policies. 93 00:04:42,040 --> 00:04:44,160 Speaker 2: And when consumers walk in and they want to buy 94 00:04:44,200 --> 00:04:47,560 Speaker 2: the higher remissing vehicles, how do you offset the penalties 95 00:04:47,560 --> 00:04:50,840 Speaker 2: associated with that without lifting vehicle prices. Because of vehicle 96 00:04:50,880 --> 00:04:53,080 Speaker 2: prices go up, people want to buy them even less. 97 00:04:53,240 --> 00:04:55,480 Speaker 1: Yeah, Hey, thanks for your time, Amy, We appreciate it. 98 00:04:55,520 --> 00:04:57,919 Speaker 1: That is Amy Wiley, who's the chief executive of the 99 00:04:58,000 --> 00:04:59,599 Speaker 1: Motor Industry Association. 100 00:05:00,440 --> 00:05:03,599 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 101 00:05:03,680 --> 00:05:05,520 Speaker 2: News Talk Set B from four p m. 102 00:05:05,600 --> 00:05:08,480 Speaker 1: Weekdays, or follow the podcast on iHeartRadio.