Australia Light-Vehicle Sales Increase 6.4% in May

Australian new-vehicle sales roared back into record territory in May, soaring 6.4% to 102,901 units with all segments increasing.

The industry’s official statistical service VFACTS says the result pushed the year-to-date total closer to positive territory, now down 0.9% at 465,381 units.

SUVs again were the largest-selling segment, rising 9.4% to 39,629 units for a 38.5% share of the May market. Cars followed, edging up 1.6% to 38,842 units for a 37.7% share, and light commercials climbed 9.4% to 21,215 units for 20.6%.

The Federal Chamber of Automotive Industries says the strongest SUV growth was in the midsize segment, which grew 23.3% year-on-year to 17,130 units in May and in volume terms was the second-largest segment behind small cars.

Business purchases of SUVs rose 14.9%, and light-commercial purchases by government climbed 31.7%. Sales to rental fleets also returned strongly during May.

After five months, car sales were off 7.1% at 38,842 units. The SUV market was up 3.2% at 39,629 units, while LCV deliveries were ahead 3.5% at 21,215.

FCAI CEO Tony Weber says the May market rebound was not unexpected, given the approach of the end of the 2016-17 financial year.

The month’s top-selling vehicle was Toyota HiLux with 4,154 units, edging out the Ford Ranger with 4,069. They were followed by the Toyota Corolla (3,160 units); Hyundai i30 (2,683); and Mazda3 (2,594).

Toyota continued to lead the market in May with 19,876 deliveries, up 15.6% year-on-year for a 19.3% share. Mazda followed with 9,903 sales (9.6%), ahead of Hyundai with 8,312 (8.1%); Ford, 7,617 (7.4%); and GM Holden, 6,917 (6.7%).

For Toyota, it was the best May result in five years as it outsold its two nearest rivals’ combined totals.

Through five months of the year, Toyota sold 84,480 units, up 5.3%, for an 18.2% share; followed by Mazda, 48,995 (10.5%); Hyundai, 37,568 (8.1%); GM Holden, 32,840 (7.1%); and Ford, 31,852 (6.8%).

“Australia is one of the most competitive markets in the world, yet Toyota customers remain incredibly loyal with a passion that has enabled us to achieve a share of at least 19% in five of the past 11 months,” Tony Cramb, executive director-sales and marketing for Toyota Australia, says in a statement.

Mazda saw all three of its SUVs – the CX-3 (1,542), CX-5 (2,298) and CX-9 (770) – notch record sales in the same month for the first time, and they accounted for 46% of the brand’s total May sales. The Mazda3 again was the company’s best performer, with sales up 12% at 2,594 units.

The Ford Mustang had a record 1,351 buyers in May, easily beating the old mark of 786 set last September.

Ford Australia Sales Director Greg Davidson says the May record follows the company’s success in securing more supply, which has seen the delivery times reduced.

Nissan Australia’s sales fell 9.0% in May to 5,083 units, leaving its year-to-date result down 13.0% at 23,490.

Meantime, Mitsubishi Australia and Nissan Australia announce the establishment of a shared parts and accessories warehousing and logistics operation following their recent global alliance.

The Australia-based initiative will see both automakers share warehousing space and logistics support in Melbourne for the national distribution of each brand’s parts and accessories.

It also will service the Renault and Infiniti brands, both of which are part of the global Renault-Nissan alliance.

In another development, Nissan Financial Services Australia and Mitsubishi Australia form a new branded financial services operation, Mitsubishi Motors Financial Services.

This follows the announcement in Tokyo of the launch of Mitsubishi Motors Financial Services, which also will be available to customers in New Zealand and Canada from June and July, respectively.

Nissan Financial Services Australia, under a separate and newly created Mitsubishi Motors Financial Services banner, has taken responsibility for the provision of wholesale and retail financial services and products for Mitsubishi dealerships across Australia.