SUV Demand Can’t Prevent Oz Sales Backslide in May

Australia’s new-vehicle sales fell 2.3% year-on-year in May 2014 to 94,562 units, as business deliveries backslid 9.1% in the wake of a tough first budget from the new federal government.

Federal Chamber of Automotive Industries CEO Tony Weber, releasing the monthly data, says government purchases rose 5.9%, while private sales edged up 1.6%.

The result, the lowest May tally since 2011, left the year-to-date total down 2.9% to 441,642 units.

Light-commercial-vehicle deliveries fell 3.6% during the month to 17,338 units for a 4-month total down 8.0% to 76,204. Car sales dropped 6.3% to 43,819 units and were off 3.7% for the year-to-date to 215,202.

But Weber says SUV sales were strong, increasing 5.4% to 30,730 units for the month, with deliveries of small SUVs climbing 8.8% to 7,444 and large SUVs rising 10.4% to 11,441.

Toyota continued its reign over the market with 17,246 units sold in May for an 18.2% share. GM Holden held 9.5% on deliveries of 9,012 units, ahead of Hyundai with 8.9% (8,403), Mazda with 8.2% (7,751), and Ford with 7.3% (6,950).

The Toyota Corolla (3,871 units) and Toyota Hilux pickup (3,313) were the month’s best-sellers, followed by the Mazda3 (3,291), Holden Commodore (2,648) and Hyundai i30 (2,553).

It was the fifth time in 14 months that the Toyota duo achieved the Australian sales quinella, in the process extending the automaker’s market-leading sales tally to almost 80,300 vehicles so far this year. That’s more than 35,800 units ahead of its nearest rival.

Toyota’s RAV4 set a monthly record for the fifth time in a row with more than 1,500 sold during May. RAV4 sales in 2014 are tracking 31.9% better than year-ago and Corolla sales have grown 4.4%.

Toyota Australia Sales and Marketing Executive Director Tony Cramb says June is poised for a strong result, ensuring Australian full-year sales remain on target to exceed 1 million.

“Expectations by the Reserve Bank of Australia (RBA) for a period of interest-rate stability is good news for the auto industry and consumers generally, as is the decision to hold the official cash rate at its record low of 2.5%,” Cramb says in a statement.

“The outlook for the rest of the year remains positive, with the RBA pointing to signs of improvement in investment intentions for non-mining sectors of the economy as well as low inflation, moderate growth in consumer demand and a strong expansion in housing construction.”

Hyundai’s May result marked its 24th straight month of year-on-year sales growth as its deliveries grew 4.7% year-on-year. It was the Korean automaker’s highest-ever May sales total and its 22nd consecutive record-beating month.

In the car segment, Hyundai’s 6,047 deliveries put it in second place with a 13.8% market share as it overtook Mazda in year-to-date sales.

The Mazda CX-5 again was the country’s most popular SUV of any size and type, selling 1,715 units. Averaging almost 1,800 sales a month this year, the CX-5 is up 9.2% year-on-year and is approaching 10,000 sales.

Mazda has sold 42,536 units year-to-date for a 9.6% market share.

Fiat Chrysler Australia’s 3,538 sales for the month gave the automaker its best-ever May result, with all of its brands posting higher year-on-year sales, paced by a 28% jump in Chrysler-Jeep-Dodge deliveries.

The Jeep Grand Cherokee again was the top-selling large SUV in May with 1,694 deliveries, its best-ever sales month in Australia.

Suzuki bounced back from supply issues to record May sales of 1,757 units, its best month so far this year. Suzuki Australia General Manager Andrew Moore says the automaker has been hindered by lack of product and May was the first month it was back to nearly full production.

Renault Australia sold 920 units for the month, with Managing Director Justin Hocevar calling the growth trajectory exciting.

“Year-to-date we are showing growth in sales of 48% compared with the same period last year, which in itself was a record year,” he says in a statement. “Comparing May 2014 with 2013, we see a 67% rise.”