AUSTRALIA’S automotive industry has been hit by a crippling shortage of vehicles, leading to a nationwide scramble to fill the void.
In recent months, many cars have been being sold off for a price of $250,000 and even more for $1.5 million.
But the latest wave of sales has led to a surge in the prices of many newer cars.
A recent report by the Australian Auto Parts Manufacturers Association found that the average car’s value has increased by $200,000 since January.AUSTRALIAN AUTOMOTIVE INDUSTRY CEO MARK LING says the problem was the combination of rising prices and a lack of demand for vehicles.
The industry’s current crisis is driven by a combination of factors that include a lack for demand and a combination, Mark Ling says.
The shortage is not confined to Australia, the industry’s chief executive says.
In the United States, the auto industry is struggling because the number of people driving vehicles has not kept pace with the demand for them.
“It is the largest industry in the world, but it’s also the least affordable,” he says.
“We’ve got a huge supply of vehicles to go around, but the demand has been way off.”
The demand for new vehicles is not there.
“So what we have is a shortage of supply.”
In the US, there are lots of people who want to buy a car but are afraid to go and buy one because they don’t want to risk getting stuck in traffic or they don�t want to pay that much money.
“The industry has also struggled to cope with the high price of gas and other fuel, and a growing number of cars are being driven for hire.”
This is the problem with all industries, and it’s the reason why you have a shortage in the first place,” Mr Ling says, pointing to the need to develop a network of service providers and supply chains.”
You have to have a network and a supplier base, and we haven’t got one.
“That’s why we have a problem with demand.”
The Australian Automotive Industry Association estimates there are about 1.2 million vehicles available in the market.
But the demand is not as high as the supply, according to Mr Ling.
“There are people who are driving their cars for a living, and they don`t want that to change.”
They want to make sure that they get paid for the car they drive.
“And we have no solution for them.”
Mr Ling says the industry needs to look at ways to encourage more people to buy cars, to make them more affordable and more environmentally friendly.
“If you want to see people driving more, you have to get the cars to the people who drive them,” he said.
Topics:industry,business-economics-and-finance,market-and.commercially-academia-andamp;community-and,community-organisations,cars,autos,australiaContact Robina TompkinsMore stories from New South Wales