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Of key importance to the industry has been the
topic of consumer confidence. The past few
months have seen a contraction of household
income and consequently household spending.
This, combined with the uncertainty of the
pandemic outcome, has severely curtailed retail
activity.
The Reserve Bank of Australia has warned that,
over the first six months of 2020, Australia is
likely to experience the “biggest contraction
in national output and income that we have
witnessed since the Great Depression.”
The Federal Government’s timely response
through various stimulus initiatives has been
welcomed by the FCAI, with programs such
as JobSeeker and JobKeeper supporting
the community. However, the Chamber has
urged the Government to consider extending
packages such as the Instant Asset Write Off to
further encourage business investment.
“The Instant Asset Write Off initiative has real
potential to help stimulate the market, and we
would like to see it extended in its current form
beyond 30th June 2020,” Mr Weber said.
Mr Weber noted that the combination of the
stimulus initiatives and the gradual easing of the
pandemic-enforced restrictions has introduced
some optimism into the market.
“Anecdotally, we may be beginning to see
some ‘green shoots’ in the marketplace. With
people venturing out a little more, dealers have
advised of a slight uptick in floor traffic through
dealerships.
“Additionally, we are hearing from some brands
that website traffic is on the rise – a sure sign of
increased purchasing interest.
“And finally, brand End of Financial Year
campaigns have started, meaning the
opportunity to snare a bargain has increased
significantly,” Mr Weber said.
“So if you are in the market for a new vehicle,
now’s the time to visit your local dealer.”
6 ISSUE 23 2020 / WWW.AFMA.ORG.AU