Oz Market Decline Slows as Debate on Used Imports Heats Up; NZ Sales Jump

Australian new-vehicle sales fell for a third month in a row, but the market was giving signs of a recovery with March deliveries down just 0.1% from year-ago, or 133 units, to 97,267. Federal Chamber of Automotive Industries data shows year-to-date sales down 2.4% to 266,370 vehicles.

FCAI CEO Tony Weber says large vehicles were a popular choice in March, with purchases of large passenger cars up 24.5% year-on-year to 4,350 units and large SUVs up 9.7% to 11,220.

"Smaller-sized car sales slowed in March, following strong sales throughout 2013,” Weber says in a statement.

Sales in the microcar segment dropped 15.8% to 1,789, while light-car deliveries slowed 10.9% to 9,411 units and small-car sales eased 4.0% to 21,512.

The FCAI says government purchases rose 9.6% year-on-year in March, while private purchases increased 4% and business buying fell 4.7%.

With the market perched precariously on the downside, the Victoria Automotive Chamber of Commerce is demanding to know if the federal government is going to lower import restrictions on used vehicles.

A Productivity Commission position paper concludes the “policy rationale for prohibiting the large-scale importation of second-hand vehicles into Australia is weak” and that the “$12,000 specific duty on imported second-hand vehicles appears to be largely redundant, providing a prima facie case for its removal.”

VACC Executive Director David Purchase says motorists who believe allowing cheap used vehicles, known as “gray imports” to be introduced enmasse will lead to more affordable vehicles are in for a nasty surprise.

Purchase says these vehicles have not been designed to comply with Australian Design Rules and safety regulations, have dubious odometer readings, lack warranties and offer little or no repair and service information. There’s also questionable access to parts, unknown trade-in values and recycling issues.

“In Japan, where the majority of these vehicles come from, they are termed end-of-life vehicles,” he says in a statement. “The risk of allowing an open slather of used vehicles to be imported into Australia is that we will become the dumping ground for unwanted vehicles from other countries.”

Meantime, the newly released Toyota Corolla was the top-selling car in Australia in March with 4,086 units, ahead of the Mazda3 (3,587), Toyota Hilux (3,105), Holden Commodore (2,967) and Hyundai i30 (2,767).

With two of the top five models, Toyota continued to dominate the market with March sales of 18,275 units, well ahead of GM Holden (9,851), Mazda (9,203), Hyundai (8,606) and Ford (7,037).

The Corolla's success, together with a record 1,888 deliveries of the RAV4, saw Toyota post its best month of sales this year. It also was its strongest first-quarter result since 2010 with 48,121 units, more than 20,000 ahead of its nearest rival.

Mazda also rewrote its Australian record books, as it sold 9,203 units in March, marking the first time it has delivered more than 9,000 units in three successive months.

Hyundai Australia finished March celebrating its 22nd consecutive month of year-on-year sales growth, placing fourth overall with volume up 2.4% to 8,606 units.

Fiat Chrysler Automobiles has had its best-ever sales start in Australia, with first-quarter deliveries up 39% to 10,015 units. The Chrysler, Jeep and Dodge brands sold a record 2,838 units in March.

Its Italian brands Fiat, Alfa Romeo and Fiat Professional, also opened the year with record first-quarter sales results. FCA says Fiat remains Australia’s fastest-growing brand with year-to-date deliveries up 531%.

Across the Tasman Sea, the New Zealand market continued apace with new-vehicle sales jumping 18% to 11,238 units for its strongest March since 1984.

Year to date, the Kiwi market was up 15% at 30,879 units.

The March result saw car sales rise 17.5% to 7,994 units and the commercial-vehicle segment climb 20.0% to 3,244.

Motor Industry Assn. CEO David Crawford says deliveries of new cars rose 14% in the first quarter to 22,874 units, while the CV market was up 19.0% to 8,032.

“This result shows that New Zealanders are continuing to take advantage of our strong dollar backed by confidence in the economy to replace their vehicles,” Crawford says in a statement, “New-vehicle registrations continue to perform at levels last seen in the early 1980s.”

Toyota led the March market with a 16% share on 1,802 deliveries. Ford followed with 11% (1,202), ahead of Holden with 8% (950).

The Toyota Corolla remained the top-selling passenger model with 408 units, followed by Suzuki Swift (287) and Holden Commodore (245).

The Ford Ranger was the top-selling commercial model in March with 550 units, ahead of the Toyota Hilux (505).