NEWS Latest News

Sluggish Sales

New Vehicle Sales continue to fall.

It should come as no surprise that the first quarter of the 2009 calendar year has seen a massive decline in new vehicle sales. Units sold in the year to March are 19.2% down on the same period in 2008. This equates to a staggering 50,500 less sales or almost 16,800 fewer vehicles sold each month of 2009.          

Not surprisingly, the passenger segment has been the major contributor to the decline in volume terms. However, if the heavy commercial segment is excluded, it is the SUV segment that has suffered the greatest comparative fall being almost 23% down on YTD March 2008 sales. After average growth of around 9% pa for the past decade, this may be a sign of the times for this segment.

On the other side of the equation is smaller vehicle performance. While combined sales in the light and small vehicle segments are down on this period last year, market share is up 2%.

A closer look at the data reveals some interesting trends. Toyota’s market dominance means that it has suffered the biggest volume declines. Interestingly, though, Toyota’s share is down just over 2%, compared to stable market share for Holden and Ford, and increasing share for Hyundai and Mazda, albeit in a declining market. In fact, on a YTD comparison, Hyundai has posted the strongest growth and has improved its market share position from 8^th in March 2008 to 6^th place in March 2009.

The sale of diesel vehicles (ex heavy commercial) has held up well compared to other fuel types. Its share is up almost 3% compared to petrol share (down 2.8%). Sales of both Hybrid and LPG vehicles are down (940 vehicles in total). While this is in line with the total market decline, it is a little surprising that, like diesel powered vehicles, hybrid and LPG vehicles have not been able to steal few market share points in a market that seems, on the surface at least, to be preoccupied with greener motoring.

While Holden Commodore remains Australia’s top seller, units sold are 1,500 down, while Toyota Aurion sales are down 2,600 units and Corolla suffered the biggest fall being almost 3,500 units down on a YTD basis. If the current trend prevails total 2009 sales are likely to be as low as 820,000. That is 19% below 2008 and almost 22% below 2007’s record sales of 1.05 million vehicles.

Whatever way you look at it, volumes are down. And the upshot of this is that numerous vehicle manufacturers have cut their global production levels. Locally, the Ford factory has been closed for the majority of 2009 and Holden has recently reduced shifts at its South Australian plant.   Also, many manufacturers will not be releasing 2009 build vehicles until they have cleared all their 2008 stock. This will result in delays in availability for many makes and models and when coupled with the many planned price rises, there appears to be more pain ahead for the new vehicle market.

< back to news