Australia’s Automotive Fortunes Assured in the Short Term but Disruptors to the Long-term Potential are Many

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A combination of low interest rates and oil prices, employment gains and healthy economic growth are boosting Australia’s automotive fortunes in the short term. Australian consumers also continue to defect to versatile vehicles such as SUVs in their droves which is supporting replacement demand. The likelihood of rising oil prices and interest rates and an economic slowdown limit long-term potential but population growth, dictated by immigration policy, remains a key factor.