How The Coronavirus lockdown will impact NZ’s motoring industry
Holden’s sales departments, such as Schofields (above) will close, but services will remain open to the Police, farmers and medical staff. Photo: Giltrap
With all non-essential businesses in lockdown for at least four weeks, New Zealand’s motoring industry will be standing by for a dramatic decrease in sales for the second quarter of 2020.
Vehicle retail, service workshops and parts sales are deemed non-essential services, so must close from Wednesday 25 March.
But the Motor Trade Association is seeking clarification, believing the motoring industry is essential to many during the coronavirus pandemic, according to industry website autotalk.
MTA’s advocacy and strategy manager, Greig Epps, told autotalk they are lobbying the Ministry of Transport to seek clarification on the issue and will push for the inclusion of parts and servicing.
Holden New Zealand’s spokesperson Edward Finn told autotalk that the brand will continue to provide an aspect of parts sales and servicing.
In Australia, the automotive dealership industry lobbied the Government to deem automotive parts and service departments “essential services”, according to CarAdvice.com.au.
The Australian Automotive Dealers Association (AADA), told CarAdvice that parts and service departments in particular should be allowed to remain open as more people shift to cars to avoid the use of public transport.
The Motor Trade Association in New Zealand, and Australian counterparts, say service departments are essential services. Photo: Supplied
The Motor Industry Association’s chief executive officer, David Crawford, said disruption to sales would be felt in New Zealand in the coming months.
“It remains unclear the extent to which supplies of new vehicles will be impacted but some disruptions will be felt in the coming months.”
March is traditionally one of the strongest months for new vehicle sales in New Zealand, while April generally sees a decline due to Easter and the school holidays.
Year to date, 24,502 new vehicles have been registered, compared to 25,612 (1,100 fewer) at the same time last year.
At the end of the first quarter of 2019, there were 38,855 new vehicles on our roads. With a jittery economy due to coronavirus uncertainty and the lockdown restricting the remainder of sales for March, there is little chance new vehicle sales can come close to that figure. First quarter figures from the MIA are due early April.