Abstract

Despite stagnation in new-vehicle sales from the mid 1970s, both the size and total usage made of the Australian stock of cars and station wagons continued to grow unabated into the early 1980s. Such apparently contradictory trends were an international phenomena, as were increased sourcing of vehicles from Japanese manufacturers, and the experience of less than favourable economic and demographic conditions. This paper looks at the factors behind the movements noted, and attempts to assess to what extent the “downsizing” phenomena observed overseas was encountered in Australia. Increasing vehicle life expectancy and an initially favourable age structure were found to account for contradictory growth rates in new registrations and the vehicle stock, while increased lifetime utilisation of light/medium vehicles accounted for much of the increase observed in total distance travelled. Only a weak downsizing trend was detected commencing circa 1979, its weakness reflecting an unexpected trend away from light vehicles. Projections indicate that if levels of, and size patterns associated with, new-vehicle registrations persist, downsizing trends will continue to be weak, and overall stock growth rates are likely to slow, although stagnation is unlikely by 1990.

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