Chinese RV imports plummet
RV imports drop by 40 per cent in May as buyers start to returnIn some brighter news for the recently struggling Australian RV manufacturing industry, the number of imported RVs entering the country has dropped significantly since the start of the coronavirus crisis.
According to the Caravan Industry Association of Australia, just 480 RVs were imported into Australia in May -- a 40.4 per cent drop, year-on-year.
"This marks the single largest decline recorded in the past 10 years of data collection and the fifth consecutive period of negative growth," said Peter Clay, GM Research and Government Relations at the CIAA.
"Year to date, 3118 units have been imported, which remains 23.6% down compared to 2019. This represents 968 less units entering the market for the year with total recorded imports now sitting below 2017 levels," Clay said.
Before the coronavirus pandemic, cut-price Chinese-built caravans and camper trailers continued to steal market share from Australian RV manufacturers. The annual number of Chinese-built RVs more than doubled between 2017 and 2019, from around 5000 units to just under 10,000, while annual Australian RV production remained steady at just over 20,000.
Queensland-based MDC Campers, which is one of the biggest selling Chinese RV brands in Australia, was one of many RV sellers hit hard by the pandemic, although its dealers have since seen buyers return following the lifting of some social distancing restrictions.
"We were slow just before Easter and progressively improved since then," MDC CFO Richie Fort told caravancampingsales.
"(But) the common theme (now) I’m hearing across import and local dealers is business is very good
"It seems that there is pent up demand and the lack of international travel is getting new people into the market."
The CIAA, which has around 80 Australian RV manufacturers as members, usually reports monthly data around Australian RV production, but has not supplied any figures publicly for a few months.
"(The monthly RV production report) hasn’t been released yet," Clay told caravancampingsales. "We have a sample issue due to a significant amount of operators being closed and unable to provide data. So we are unable to release the report yet.
"Initial numbers suggest an approximate 50% decline in April although numbers are improving May. Anecdotally we are hearing that there is significant volume of sales occurring however people are not prepared to wait for product."
Clay also said that "inventory and supply chains risk being impacted" with the recent drop in RV imports and local production.
"When we couple this with COVID related disruption to local production yet a seemingly strong consumer demand for recreational vehicles at present, current inventory levels across the country may start to become exhausted," he said.
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