If there were ever credit fears in Australia, it would be hard to tell judging by the latest car sales figures released for calendar 2007.
Consumer confidence was not dented when it came to buying a car with Australians buying more than one million motor vehicles in a 2007.
Sales figures released on Monday by the Federal Chamber of Automotive Industries (FCAI) show that close to 1.05 million cars, trucks and buses were sold in 2007.
"One million new motor vehicle sales in a country of 21 million people is an impressive achievement by the Australian automotive industry – and ranks as one of the highest rates of new car purchase in the developed world," said FCAI chief executive Andrew McKellar.
McKellar said the market growth in 2007 was the continuation of a trend that has seen car sales expand by 277,000 vehicles or 35 % since 2001.
"The Australian motor vehicle market has now grown in six out of the last seven years, driven by the strength of the labour market, rising asset values and improving vehicle affordability," he said.
For the 12th year in a row Holden's Commodore kept its reign as Australia's best selling motor vehicle in 2007, with 57,307 sales.
Toyota Corolla maintained its second place with 47,792 and in a reflection of the importance of the light commercial vehicle market – Toyota's HiLux was third with 42,009 sales.
Despite this, Australian car manufacturing industry is not barrelling ahead.
Increased competition and a preference for imported cars have resulted in job cuts across the sector in 2007, as car and component makers battled to survive.
Australia's biggest car makers are Holden and Mitsubishi with vehicle manufacturing operations in Adelaide. Holden is exporting locally-made cars overseas to ensure viability of domestic business.
Similarly, United States car industry is having it tough.
Just last month, US car companies have been reported to be cutting production from January 2008 because of slowing sales and tightening credit.
Australian sales figures for calendar year 2007 show consumer confidence unaffected by the year's interest rate rises.
Andrew McKellar said "last year the motor vehicle market grew at approximately twice the rate of the economy as a whole."
"Although economic fundamentals remain strong and consumer confidence is proving to be robust, we think future growth will be more closely aligned with trends in overall domestic market."
