Car sales surge as economy gains momentum

New car sales are on the rise, figures from the New Zealand Transport Authority show. Photo / Glenn Taylor

Consumers appear to be returning to car yards in a sign the economic recovery is taking hold, figures released by the New Zealand Transport Authority show.

Both new vehicle registrations and used car imports showed continued signs of recovery in March, building on already improved figures in the first months of 2010.

The latest figures support the view that the New Zealand economy is undergoing a recovery on the back of firming consumer confidence. They will be a factor for the Reserve Bank to take into consideration as it prepares to raise interest rates off record lows later this year. Economists are picking the first hike in the Official Cash Rate (OCR) on either June 10, July 29 or September 16.

Used car imports rose 52 per cent to 7,800 in March from the year before, building on gains made since November. March was the highest month for new registrations of used imports since May 2008.

Registrations for new passenger vehicles rose 10.5 per cent to 5,392 in March from the same month a year before, the third month in a row in which there was an annual increase.

This followed monthly gains (from the same month a year ago) of 13.5 per cent in February and 5.8 per cent in January. Registrations had fallen for 18 consecutive months (from the same month a year ago) until January 2010.

New commercial vehicle registrations rose 2 per cent to 1,595 in March from the year before, following a 7.4 per cent rise in February from a year ago. Before February, registrations had fallen for 19 consecutive months from the same months a year ago.

- interest.co.nz