REPLACEMENT MARKET

Press, Volume LXVIII, Issue 20647, 9 September 1932, Page 8

REPLACEMENT MARKET

POSITION IN NEW ZEALAND. The replacement market of motor vehicles worn out or destroyed has not yet reached large dimensions in Zealand, but is likely to do bo in thi near future. Since 1925, the numbea of cars struck off the register is 19,154,'. but another 29,000 have not been relicensed, a large percentage of which must be regarded as finished (says the official journal of the motor trade in New Zealand). The average life of a motor-car in New Zealand has been a moot point up to the present, as no reliable data have been available. Since 1925 accurate figures ,have been kept, and it is now possible to make an estimate somewhat near the mark. If 10,000 of the dormant licenses are revived the number of cancellations would be about 38,000. which would absorb all motor-cars imported previous to 1923, and the average life would work out at about eight years. ' Replaced in 1930. Working on this basis, the number of motor-cars replaced in 1930 would be 3000, and in the present year 3500. These numbers are comparatively small, as the number of cars in use in- 1922 was less than a quarter what it is to-day. In 1923 motor transport took a big forward move, and sales of cars jumped from 3474 in 1922 to 12,357. This increase has been maintained each year right up to the end of 1930. Tf the average life of a car is cprrectly estimated at eight years, the replacement business for next year should be over 12,000 cars, and this figure should be maintained and increased over a number of' years if the present ratio of cars to population is maintained. . Postponement of Business. Under present conditions, only a small proportion of the number will be replaced, but this means only a postponement of the business until conditions are normal. The longer replacement is delayed, the larger must be the replacement market, and this applies to other sections of the motor business. The coming year doss not. yet show signs of increased business/ and it will probably be a struggle for many to continue to carry on. We believe the struggle is well worth while, as the motor business has' a bright future, and will be amongst the foremost to recover and forge ahead.