MIA warns new-vehicle demand set to plunge
The Motor Industry Association (MIA) fears new-vehicle sales are likely to plummet as the coronavirus outbreak creates a “challenging market”.
Chief executive David Crawford expects New Zealand to follow the pattern of other countries and suffer a decline in business as the pandemic continues.
His warning comes at the same time the MIA has cancelled all its meetings until June and is urging sensible precautions from the automotive sector to help limit the spread of the disease.
“We expect the New Zealand market to follow overseas patterns where not only have supply constraints kicked in, demand for new vehicles has plummeted,” Crawford explains. “It is the combined effects of supply constraints with lower demand due to the rapidly declining economic situation that will see sales of new vehicles reduce in coming months. Distributors are bracing themselves for a challenging market.”
Crawford, pictured above, adds the MIA and new-vehicle distributors are regularly reviewing what actions to take as the Covid-19 outbreak continues, including limiting face-to-face dealings and travel.
“The MIA made a decision on Sunday night to cancel all MIA industry meetings until June and MIA staff are now working from home,” he says. “Attendance at conferences, travel for industry meetings and liaison with officials through meetings has been significantly reduced or cancelled. It is a fluid situation and these measures will be under continuous review.
“Many distributors have taken a lead from the government and have initiated a range of management measures to reduce the likelihood of inadvertently spreading the virus. These include suspension of in-house training sessions, dealer meetings and for some initiating working from home practices. International travel was suspended for most last week and this week most have suspended domestic travel for their staff.”
Crawford says at a time when there is widespread advice about minimising unnecessary contact and the government urging “social distancing”, he was shocked an automotive event went ahead on Waiheke Island, off Auckland. The EVs And Beyond conference, which was organised by EVtalk, was held on March 16 and 17 and attended by more than 100 industry and political figures.
“It came as a surprise that they decided to continue with their EV conference on Monday and Tuesday, which in our opinion should have been cancelled,” Crawford says. “That it continued was in our view irresponsible.”
While the immediate outlook for the economy as a whole is far from promising, Crawford has welcomed the government’s $12.1 billion package to help support businesses. “It’s always a challenge in these times to get the right policy mix. But, overall, the decision to support those out of work is pragmatic and sensible, as is the funding boost to the health system.”
