The auto market has recorded its longest run of weakness since the GFC, the broker notes, and its only getting worse. Autosports result, in line with a pre-release, demonstrated a high degree of financial and operational leverage in the company's business model.
The broker notes there is no overwhelming evidence to suggest a correlation between house prices and new vehicle purchases. Credit demand and availability do nevertheless have an impact. This, and income growth, are the most important determinants of consumption growth, including vehicle sales.