Tight finances and changes in consumer behavior characterize the housing market
New car sales in August 2023 show clear signs of change in consumer behaviour. With a decrease of over 10 percent from August 2022, the trend is clear. People are more critical of where they put their money, and car sales are no exception.
While new car sales – i.e. the number of first-time registered new passenger cars – had a relatively normal volume in July, in August there was a decrease of just over 10 per cent compared to the same month last year. So far this year, the number of new car registrations is around 3 per cent behind last year. A tighter economy characterizes the choice when buying a car.
A total of 11,083 new passenger cars were registered in August, which is 10.4 per cent fewer than last year. And so far this year, 85,155 new passenger cars have been delivered to car buyers, and that is 3.3 percent fewer than in the same period in 2022.
Fuel for new passenger cars until 2023
There are some clear trends behind the numbers:
Electric car sales remain strong. With an electric car share of a whopping 83 per cent for new car sales in August, Norway confirms its position as an electric car country. This despite the general decline in car purchases.
Consumers seek security. As director Øyvind Solberg Thorsen of the Road Information Council (OFV) notes, people choose well-known car brands over newcomers. This indicates a desire for security and reliability in uncertain times.
Used car sales are booming. Although new car sales are experiencing a decline, used cars are changing owners at the same pace as before. This suggests that people are looking for more economically efficient solutions.
Second-hand exports are increasing. This can be a combination of attractive incentives and changes in the market.
Electric van sales are gaining momentum, although there is still a long way to go before the overall goal of 100 percent zero emissions.
The 10 best-selling car models in August – number
The 10 best-selling car brands in August – number
Overall, the figures from August 2023 illustrate a changing market. While tight finances affect the decisions of many, consumers are finding new ways to navigate the car market. Electric cars, used cars and well-known brands are standing strong, while luxury cars and newcomers are struggling.
Supply greater than demand The figures from OFV show that there is a significantly lower registration rate this year than in the previous two years, and the sudden stop in new car sales that started the year affected both car importers and dealers.
In recent months, the market has been more campaign-driven than we have seen in many years. Now it seems that the supply of new cars ready for delivery is greater than the demand. Many of the new car registrations so far this year are cars that were ordered by customers a long time ago, and the industry reports fewer new customers in car shops at the moment.
(ALL FIGURES FROM OFV)