Australian businesses are stepping up their investment plans over the past 12 months despite the slowing economy. Data from Commonwealth Bank of Australia shows a 22% year-over-year uplift in vehicle and equipment financing.

The new figures show a record number of businesses are financing greener assets. Electric vehicle fleets are up more than threefold (325%) and hybrid motor vehicles up 120%. Small businesses are leading the way on this front. Specifically, they are leveraging CBA’s Green Vehicle and Equipment Finance, with electric vehicle financing up 346%.

Manufacturers are also stepping up their investment in new assets. There is a 24% jump in funding of manufacturing and industrial equipment such as manufacturing lines, forklifts, and scissor lifts. Funding activity has been particularly strong among regional manufacturers and agribusinesses (up 42%). This is led by purchases on moulding machines, packing and cutting machines, silos and other food manufacturing machinery.

CBA’s Executive General Manager of Business Lending, Grant Cairns, says the broad-based increase reflects post-covid business growth. And there is evidence of businesses evolving their models to invest in energy efficiency improvements.

“Business confidence remains strong despite economic headwinds from higher rates and inflation. We are seeing growing investment in assets across agriculture and manufacturing. This is supported by an improved supply chain landscape in a post-Covid world,” said Cairns.

“Companies are also stepping up investment in the energy transition. More businesses are looking to improve energy efficiency through equipment upgrades or increased adoption of electrified transportation and replacement fleets. Part of this shift is driven by customers taking advantage of government rebates and subsidies.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.