Federal Chamber of Automotive Industries CEO Tony Weber says for "some time" there has been a problem of demand for vehicles outstripping supply because of "a number of issues around the world".
"The lack of supply around the world is from microprocessors shortages, driven by the demand for microprocessors from the car industry and other electronic industries around the world," he told Sky News Australia.
He said there has also been an issue of COVID impacting factories that produce cars.
"And we also have shipping issues - you put that all together with what was already strong demand and now all these very unfortunate people in the flood-affected areas ... also requiring new cars, that's going to put further pressure on the system."
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