Oz on Pace for Record Sales Year

The Australian auto industry already is talking about a record year after the market posted its best-ever March with deliveries up 8% year-on-year to 105,054 units.

Federal Chamber of Automotive Industries CEO Tony Weber says the popularity of versatile SUVs and light-commercial vehicles shows no signs of slowing down with sales in the SUV segment up 15.3% year-on-year to 35,503 units in March and climbing 15.4% to 95,221 year-to-date.

LCV sales increased 10.1% from year-ago to 18,429 units in March, for a 3-month total up 4.6% to 46,883. New-car sales rose 2.4% in March to 48,185 units, but were down 2.7% for the quarter to 128,759.

“In particular, we saw private purchases of light-commercial vehicles increase significantly in March, with sales up 33.4%,” Weber says in a statement. “The versatility of these vehicles makes them a popular choice for many Australians, providing the capacity needed for work, leisure and family activities.”

Private purchases rose 15.6% for SUVs, but fell 1.9% for cars.

Business buyers were drawn to cars, however, with sales up 9.3%. SUV deliveries to business rose 10.9%, but LCV purchases in the sector fell 4.4%. Government buyers bought 4.4% more cars, 17.7% more SUVs and 9.9% more LCVs.

Toyota continued its reign as Australia’s top-selling brand in March with 19,082 units for an 18.2% market share. Mazda followed with 10,217 units (9.7%), ahead of Hyundai with 8,709 (8.3%), GM Holden with 8,571 (8.2%) and Nissan with 7,138 (6.8%).

The Toyota Corolla led the March field with sales of 4,261 units, ahead of the Mazda3 (3,558), Toyota Hilux (3,346), Mitsubishi Triton (2,940) and Holden Commodore (2,436).

The strong results coincide with the release of stockbroker Commonwealth Securities’ annual car affordability index showing vehicle affordability is the best it has been in the 40 years since the index began.

Toyota sales were up 17% on February and its monthly and first-quarter (48,086 units) totals were its best results in five years.

The growing demand for Toyota vehicles is a major factor behind the local industry eclipsing the 100,000 sales mark in the first quarter for the first time.

Toyota Sales and Marketing Executive Director Tony Cramb says several factors contributed to the remarkably strong sales for the industry.

“After property, new vehicles are the biggest purchase for most consumers – and both these sectors are benefiting from record-low interest rates,” Cramb says in a statement.

“New-vehicle sales are also supported by aggressive competition resulting in a combination of prices and features that represent unprecedented value for money,” he says. “New and better vehicles are entering the market almost every week.”

The arrival of first-ever CX-3 helped Mazda post a record 10,217-unit March and first-quarter high of 28,280. The CX-3 was only available for the last nine selling days of March but accounted for 814 sales.

“Our aim is to sell 1,000 units a month, to fall just short of this after only nine days of sales is very satisfying,” Mazda Australia Managing Director Martin Benders says in a statement.

Strong SUV and LCV sales powered Mitsubishi Motors Australia to new March and first quarter import records. It sold 6,307 units in March (up 16.1%) for a year-to-date 16,629 units (up 16.7%).