Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ vehicle fleet size increasing

NZ vehicle fleet size increasing – expect more traffic, everywhere

Traffic volumes seem set to increase as the size of New Zealand’s national car fleet continues to grow, says Motor Trade Association (MTA).

After a period of strong growth from 2002–2007, the build-up of car numbers was far more subdued during the global financial crisis of the latter part of the decade. With a range of factors now working together, the number of cars in our fleet is on the rise again.

MTA estimates that in 2013 alone the car fleet grew by more than 57,000 units (2.4 percent), the strongest growth since 2005 (2.8 percent). At the end of 2013, the national car fleet stood at 2,482,513 units.

MTA spokesperson Ian Stronach says sometimes it is hard to comprehend the difference that many cars make when they’re spread across the country. “If all the cars added to the fleet last year lined up nose to tail, they would stretch from Wellington to Patea in Taranaki!”

The strong market for new and first-time used import cars over the past 18 months has contributed strongly to the overall growth in the size of the car fleet. Continued increases to the size of New Zealand’s car fleet seem likely: fuel costs have been relatively stable over recent months and new roading projects underway in many parts of the country are encouraging car use.

Statistics New Zealand projects the country’s population to reach 5 million in the mid-2020s, and unless something changes significantly, by far the most common method of transport will still be the private motor car, MTA says.

In 2013, new car sales were up 7 percent, while sales of used import cars were up 26 percent. For the year to date, sales are up 14 percent and 31 percent respectively.

Strong local sales and the assistance of a strong Kiwi dollar mean demand is likely to remain firm for some time yet. The fleet is set to continue to grow in the foreseeable future.

Supporting the growth in demand has been a rise in the number of registered traders. There are now more than 3,000 registered vehicle traders in New Zealand: 22 percent more than a year ago, and the highest number since 2008.

The other significant factor influencing this growth in car numbers is the reduction in the rate of scrappage. MTA estimates the scrappage rate for cars has fallen from a high of 174,000 cars in 2005 to just 131,000 cars last year – the lowest in the past four years.

“Not everyone has the means to upgrade their car; for some people, if their car performs satisfactorily and relatively reliably, it has a certain utility value. It doesn’t matter how old or what distance it has covered, it just doesn’t make sense to the owner to exit the car from the fleet,” says Stronach.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news