By James Glynn


SYDNEY--Australian car sales hit a record level in 2023, defying surging interest rates and a massive jump in the cost of living, according to data from the Federal Chamber of Automotive Industries.

A total of 1,216,780 vehicles were sold during the year, beating the previous highest sales result of 1,189,116 in 2017, the FCAI said Thursday.

The jump comes despite reports of growing stress on household budgets amid rising mortgage repayments and the effect of soaring inflation on groceries and negative real wages growth.

Measures of consumer confidence are also at levels consistent with a recession in the economy, still, unemployment remains at lows not seen since the 1970s.

Toyota was the top selling car brand with 17.7% of the market while the top selling vehicle was the Ford Ranger with 63,356 units bought.

Battery electric vehicles accounted for 7.2% of sales, with hybrid vehicles achieving 196,868 sales, or 16.2% of new vehicle sales, the FCAI said.

"Despite the supply chain disruptions faced in recent times, consumers now have greater access to a broad range of choices, fostering increased accessibility in the market," FCAI Chief Executive Tony Weber said.


Write to James Glynn at james.glynn@wsj.com


(END) Dow Jones Newswires

01-03-24 1911ET