SUVs Soften July New-Car Sales Fall in Australia

Australian new-vehicle sales continued strong in July with 89,867 deliveries, down just 0.4% from the record set for the month a year earlier.

Still, the result saw the new-car market record its seventh consecutive month of year-on-year declines.

The latest result left the market down 2.1% on the year to 649,818 units.

Federal Chamber of Automotive Industries CEO Tony Weber says SUVs again propped up the market, with July sales up 12.7% from prior-year to 28,805 units, and ahead 4.1% year-to-date to 204,244.

“In particular, small SUV sales increased 34.8%, compared to sales in July 2013,” Weber says in a statement. “Medium SUV sales were up 6.5% and large SUV sales were up 8.8%.”

Weber says the SUV segment’s market share has risen 1.9 percentage points year-to-date. SUV sales accounted for 31.4% of this year’s market, and 32.1% in July.

New-car sales fell 6.2% in July to 43,464 units for a 7-month total down 4.6% to 312,510.

Light-commercial-vehicle deliveries fell 5.1% for the month to 14,849 units and were off 5.3% year-to-date to 115,575.

Weber says government purchases of new motor vehicles continued their climb, with July sales up 8.5% from like-2013 and ahead 6.4% year-to-date. Government buyers purchased 31.8% more SUVs in July and 11.4% new cars, but 9% fewer LCVs.

“Private sales rose 1.4%, with private buyers purchasing 16.9% more SUVs than in July 2013, but 6.4% less passenger vehicles and 1.6% fewer LCVs,” he says. “YTD private sales are up 2.1%.”

Business demand continued to fall, with the segment declining 5.1% year-on-year in July and leaving the year-to-date total down 8.4%.

Toyota maintained the overall lead in market share for July at 18.3% with 16,486 deliveries. It was followed by GM Holden with 10.1% (8,990 units), Hyundai on 9.3% (8,351), Mazda 9.1% (8,048) and Ford 6.9% (6,210).

The Toyota Corolla again was Australian buyers’ first choice with 3,800 deliveries in July, ahead of the Mazda3 (3,421), Toyota Hilux (3,140), Holden Commodore (2,469) and Hyundai i30 (2,434).

Toyota says the Corolla has topped the sales charts for the past five months and combined year-to-date sales of the hatchback and sedan are almost 26,000 units, enough to give it a narrow overall lead.

Eight Toyota models led their market segments in July: the Yaris, Corolla, Camry, 86, LandCruiser 200, HiLux 4x2, HiLux 4x4 and HiAce bus. The automaker notes that while it sold 16,486 units for the month, no competing brand reached 9,000.

So far this year, Toyota dealers have delivered more than 117,500 vehicles, a margin of more than 51,000 units over its nearest rival.

Toyota Sales and Marketing Executive Director Tony Cramb says the industry is benefiting from strong demand for new vehicles that should continue into the year’s second half. “All the signs are that the economy and consumer confidence are solid with no indications of a major upswing or a downturn of any significance,” he says.

With Toyota leading the sales charts for what is shaping up as a 12th consecutive year, the automaker has launched the first phase of its company-funded program to assist employees prepare for their future after the end of manufacturing in 2017.

For the next four years, employees will be able to visit centers at the Altona manufacturing plant and Port Melbourne head office to discuss their future plans with case managers.

During the first phase, employees will be able to obtain information on other industries, attend a career day and receive referrals for financial services and other assistance programs.

“We are committed to doing everything that we can to support our employees as we transition to a national sales and distribution company,” Toyota Australia President Dave Buttner says in a statement. “We understand that the next few years may be difficult for many of our people as they consider their options beyond 2017.”

GM Holden, another automaker with a plant closing just over the horizon, continued its year-on-year growth in July, with its year-to-date sales up 6.6% and its market share up 0.8 percentage points.

Sales and Marketing Executive Director Phil Brook says the July result builds on GM Holden’s strong first half. He notes three of the automaker’s products – the Commodore, Colorado and Cruze – ranked among the top 10 sales leaders for the first time since August 2013.

But he says intense competition and arguably the world’s highest levels of market fragmentation will continue to challenge the industry through the rest of the year.

Hyundai finished July up 4.3% to a record 8,351 units, marking a 26th consecutive month of year-on-year sales growth. It was the fourth straight month the Korean automaker finished third overall in the Australian market.

Hyundai’s 5,730 car deliveries placed it second in the segment with a 13.2% market share, ahead of GM Holden, Mazda and Ford.

“The first half of 2014 has been a period of consolidation and discipline for the brand, with strong, manageable growth,” Hyundai Australia Chief Operating Officer John Elsworth says in a statement. “I am very encouraged by our July sales on the back of our record June result. This is a very positive start to the second half of the year.”

Mazda’s second-best ever July took its year-to-date result to 59,958 units for a 9.0% market share. The Japanese automaker sold more than 3,000 units in a month for the 47th time since the start of the decade.

Fiat Chrysler notched more records with its best July sales yet and a 4.0% market share for the first time. Its 24,800 sales were up 44% year-on-year and it already has exceeded its 2012 deliveries.

The Italian-American automaker’s result was spearheaded by the Jeep Grand Cherokee – the top-selling large SUV in July, with 10,000 units – and the Jeep Cherokee, which sold 1,000 units after only its second month on the market.

The month also saw the 200,000th Jeep sold in Australia since the brand launched locally in 1994.