Smaller drop in car sales predicted

Press, Volume CXV, Issue 33791, 13 March 1975, Page 8

Smaller drop in car sales predicted

(New Zealand Press Association)

AUCKLAND.

Sales of new cars would drop only 15 to 20 per cent this year, and not up to -’>o per cent as some dealers had predicted, said Mr H. L. Russell, president of the Licensed Motor-Vehicle Dealers Association.

Mr R ussell said that his association was confident new car sales would be buoyant over the next nine months.

“We do not believe the Government will cut back imports to any great extent.” He said that last year nearly 100,000 new cars were registered. He thought 80,000 to 85,000 would be registered this year. The president of the Motor Trade Association (Mr G. J. Marsh, of Dunedin) said the motor assembly industry had a very substantial capital investment and employed large numbers of relatively unskilled labourers, and further unemployment would result from any Government action to reduce imports of completely knocked down cars.

“The Motor Trade Association believes that the Gov-

ernment intends to continue with its present policy of open replacement licences for completely knocked down cars, as this is the most effective means of ensuring that imports are related to sales of the various makes,” he said.

The importation of builtup vehicles is expected to return to pre-1973 levels. 'Nearly all the special extra licences for built-up cars, issued in 1973-74. have been used.

Sales of used vehicles were strong, reflecting the fact that adequate hirepurchase finance was once again available to the industry, he said. The Motor Trade Association was pressing the Government for a relaxation of hire-purchase terms for new vehicles, used vehicles, and motor-cycles, Mr Marsh said.