The Australian Bureau of Statistics released a monthly report on Tuesday, based on findings from the Federal Chamber of Automotive Industries.

According to the data the ACT was the only jurisdiction where sales declined, going down by -0.7 per cent. It follows a downward trend that began in January this year.

The latest ABS monthly figures on Sales of New Motor Vehicles for May trend estimate a nationwide increased by 0.6 per cent when compared with April, translating into sales of 98,534 cars in May compared with the 96,537 vehicles sold in April. The largest upward movement across all states and territories, on a trend basis, was in the Northern Territory, growing by 1.3 per cent.

A statement from the Motor Trades Association of Australia said the Australian automotive industry was going through a period of unprecedented change culminating in the closure of car manufacturers Toyota, Holden and Ford, in Australia in 2017.

Based on IBISWorld data, the MTAA said the "impact of these closures will mean an abrupt decline in the forecast of employment and revenue growth between 2016 and 2018".

Peter Brewer, FCAI's communication manager, said that "there's a wide range of factors that could contribute to the decline of car sales in the ACT but every state and territory has its ups and downs".

Former owner of Grady's Auto in Phillip Danny Grady said the Canberra market was particularly sensitive to major political or financial events.

"Everything is so politically motivated in Canberra. Sales just drop whether it's elections, the economy or the end-of-financial year," Mr Grady said

Mr Grady said car dealerships might make sales but not profit margins at this time of year "because they're just trying to get everything off the sales floor".

Adam Clearihan, the dealer principal at Subaru in Fyshwick, said his dealership was experiencing the same level of sales this time last year. He said customers were trending towards larger models.

"The SUV range has increased, year on year, they will always continue to increase, every manufacturer now is making so many SUVs," Mr Clearihan said.

"People just like the SUV feel, it sits higher, it's easier to get in and out of, and you're flexible with whatever sort of driving you're doing."

Fewer Canberrans were also buying mid-sized family cars.

But there is hope, he said that new models generally increase the volume of sales.

"Canberra is a bit of a niche market," Mr Clearihan said.