Sydney - Car sales slumped 22 per cent in November as Australians postponed purchases for fear of losing their jobs in a recession, figures released Thursday showed. Around 20,000 fewer vehicles were sold last month than in November 2007. It was the fifth consecutive monthly drop.
"It's clear that people are being more cautious with their money as the magnitude of the global financial crisis deepens," Federal Chamber of Automotive Industries chief executive Andrew McKellar said. "Certainly the most recent interest rate cut was well justified and it is hoped this will help restore some confidence and stability to the marketplace."
The cost of borrowing, now 4.25 per cent, is the lowest it has been in seven years.
Australia's three foreign-owned carmakers lobbied the government and will receive subsidies worth 6.2 billion Australian dollars (4.3 billion US dollars) over the next 13 years.
The three have seen their share of the local market fall over the last 10 years from 44 per cent to 20 per cent.
