Holidays, Budget Jitters Depress April Oz LV Sales

Australian new-vehicle sales hit their lowest April level in two years as deliveries dived 6.2% year-on-year to 80,710.

The Federal Chamber of Automotive Industries blames significant public holidays during the month, including seven non-working days in the space of 10 days.

Analysts also point to the federal budget to be announced May 13 that the government says will include draconian measures to reduce debt levels, including a possible tax surcharge on higher incomes.

This has consumers keeping their hands in their pockets as deliveries dropped for the fourth month in a row, leaving the year-to-date result down 3.1% to 347,080 units.

Australian Automobile Assn. executive director Andrew McKellar tells Melbourne’s The Age newspaper the result reflected dwindling consumer sentiment around the federal budget.

“One of the factors that may well be influencing purchasing decisions has been some of the speculation leading up to the federal budget,” he is quoted as saying. “If we do see a reliance on tax increases from the government, that could further dent consumer sentiment and that could make things tougher in the months ahead.

“It is a sign that people are being more cautious, and our concern is that some of that is linked to budget speculation. That runs the risk of further damaging confidence or consumers holding off on major purchases such as motor vehicles.”

Car sales dropped 8.9% in April to 39,027 units for a 4-month total down 3.1% to 171,383. Light-commercial deliveries slumped 8.8% to 14,045 units and declined 9.3% year-to-date to 58,866.

The SUV segment bucked the trend, rising 4.0% in April to 25,350 units to improve 0.8% so far this year to 107,863.

FCAI CEO Tony Weber says small SUVs were the most resilient segment with sales up 47.5% year-on-year to 6,258 units.

“We believe the continued popularity and increase in small SUV sales reflects the extensive choice and price competitiveness available in this segment,” Weber says in a statement.

Government purchases of new vehicles climbed 3.5% for the month, driven by LCVs, up 21.7%.

“Private and business buyers appear to be approaching the market with caution, with sales down 5.9% and 7.9%, respectively,” Weber notes.

Toyota continued its market domination with 18.5% of the April market on deliveries of 14,930 units. GM Holden held 9.9% with 8,010, ahead of Hyundai, 9.4% on 7,626; Mazda, 8.7% on 7,000; and Ford, 8% on 6,449.

The Toyota Corolla was the top-selling car for the month with 3,315 units, ahead of the Mazda3 (3,057), Toyota Hilux (2,574), Holden Commodore (2,443) and Hyundai i30 (2,271).

The Corolla also was the best-selling vehicle in the country last month, repeating its March result, while RAV4 deliveries set a new April record and the Prado maintained its strong showing in the Large SUV segment.

Australian motorists bought 63,051 Toyota models after four months of the year, leaving everyone else in its dust. GM Holden trailed with 35,429 units, ahead of Mazda (34,785), Hyundai (31,186), and Ford (26,577).

Toyota Australia Sales and Marketing Executive Director Tony Cramb says the brand’s sales will strengthen in May and June.

“The next two months are the sales ‘grand finale’ for Toyota and the industry with an intense buildup during May leading to the biggest sales month of the year in June,” Cramb says in a statement.

“Private buyers are the key, which is why Toyota is offering aggressive deals on key models in our range.”

Toyota vehicles led nine segments last month with the locally built Camry, the 86 sports coupe, Prado, HiAce van and HiAce bus joining the Corolla, RAV4, HiLux 4x2 and HiLux 4x4.

Cramb predicts sales of Toyota’s new-generation Kluger will improve midyear after orders substantially outstripped restricted supply in the early new-model period.

Hyundai, Mazda Post Strong Months

Hyundai set an April sales record and marked its 23rd consecutive month of year-on-year growth on deliveries of 7,626 units.

Hyundai models placed first in three segments, including the ix35 remaining the best-selling vehicle in Australia’s competitive Small SUV segment – with 1,375 units – for the 14th consecutive month.

Mazda continued its best-ever start to the year with its 4-month total up 0.6% to a record 34,785 units. While the Mazda3’s latest result fell just short of an April record, the CX-5 had its best-ever April with 1,543 deliveries, while the BT-50’s 1,001 units was its second-highest result in any April.

Mazda Australia Managing Director Martin Benders says April traditionally is a slower month, with several public holidays affecting showroom activity.

“Mazda sales last month were reflective of this, (however,) we’ve started the year strongly, setting a solid foundation for the months ahead,” Benders says in a statement.

Ford’s Australian-designed and -engineered Ranger moved into No.2 in pickup sales, behind the Toyota HiLux. Ranger deliveries jumped 20.7% to 7,912 units year-to-date and the automaker says it is winning over customers in the private sector with YTD sales in that segment up 158%.

In year-to-date sales in the hotly contested pickup segment, the Ranger was ahead of the Mazda BT-50, Holden Colorado, Mitsubishi Triton, Nissan Navara, Isuzu D-Max and Volkswagen Amarok.

Ford Marketing, Sales and Service Vice President Graeme Whickman says the Ranger has struck a chord with customers in Australia. “The fact that Ranger was designed and engineered in Australia means it has proven capability in our harsh conditions – something that our customers recognize,” he says in a statement.

Fiat Chrysler Group continued its year-on-year sales surge in April with 3,162 units for a 4-month total up 42.8% to 13,177. The April result gave it a 3.9% market share, up from year-ago’s 2.4%. Year-to-date its market share was 3.8%, up from 2.6% at the same time last year.

Subaru’s new-generation WRX family achieved record sales of 691 units in April.

Managing Director Nick Senior says the result represented a 466.4% increase over the same month last year and smashed a 15-year record of 469, established in 1999 when the first-generation WRX was creating a buzz.

“The most encouraging aspect is the high level of conquest business,” he says in a statement.