Weak Start for Oz Market, Despite Forecasts Calling for Another Record Year

Australian new-vehicle sales limped away from the 2014 start line with a surprising 3.7% fall in deliveries to 82,285 units in what is being predicted to be another record sales year.

Toyota roared away from the pack in January, disappearing over the horizon with sales up 2% year-on-year to 13,646 units. Mazda was a distant second with 9,411 units, comfortably ahead of GM Holden (8,871), Hyundai (7,152) and Ford (6,804).

Federal Chamber of Automotive Industries data shows the passenger-vehicle segment fell 0.8% year-on-year to 41,626 units, while SUV deliveries dropped 2.8% to 25,868 and light-commercials dived 12.9% to 123,991.

“Amid declining sales across the majority of segments, small SUVs continued to be a popular choice,” FCAI CEO Tony Weber says in a statement. “Sales in this segment reached 6,146 in January 2014, which is a 17.6% increase on January 2013 small SUV sales.”

The Mazda3, in its last full month of sales before its replacement by an all-new version, was the best-selling model, up 36% to 4,561 units, driven by a competitive A$19,990 ($17,825) drive-away price. The Toyota Corolla, Australia’s top-selling car in 2013, followed with 2,914 units, ahead of the Toyota Hilux (2,544), Hyundai i30 (2,486) and Holden Commodore (2,364).

After a continuous decline in government purchases in 2013, sales in the sector rose 8.9% in January, mostly a result of the 26.2% gain for the passenger-vehicle segment. Government purchases of LCVs rose 2.2%, while SUV buys dropped 8.4%.

Business sales slipped 7.8%, a decline driven mainly by a 26.1% fall in LCV deliveries and an 11.5% drop in SUV purchases. Business deals for cars rose 8%.

FCAI says private sales were consistent with year-ago results. The growth in private purchases of LCVs continued, with sales up 10.8%, while deliveries of SUVs rose 3.9%. Private purchases of new cars fell 4.1%.

Toyota Australia Sales and Marketing Executive Director Tony Cramb says his company’s January result lifted its market share almost a full percentage point.

“It has been a strong start to the year for Toyota with gains in sales and market share, which are pleasing ahead of the introduction of an all-new Corolla sedan this month and an all-new Kluger SUV next month,” Cramb says in a statement.

“Toyota is well-placed to record another year of more than 200,000 sales, which would result in a 12th consecutive year of market leadership.”

Mazda Australia started the year with two January records for volume and market share as it topped three sales segments.

Its sales of 9,411 units gave it an 11.4% market penetration, while topping the small-car segment with the Mazda3. The Mazda2 led the competitive light segment and the CX-5 was the best-selling SUV.

Fiat Chrysler Group achieved a number of firsts in January with its 3,113 deliveries marking the sixth-consecutive month of more than 3,000 sales. It also laid claim to the strongest gains of any of the top-15 selling marques, with a 46% year-on-year increase.

Chrysler, Jeep and Dodge combined for their best January with sales up 20% to 2,292 units.

Jeep Grand Cherokee again eclipsed Toyota Prado to lead its segment, with deliveries soaring 51% to 1,379 units.

The Fiat and Alfa Romeo brands, including Fiat Professional commercial vehicles, recorded their best-ever January with sales of 821 units, up 232.4% from the previous record of 247 units set in 2007.

“Our challenge this year is to improve on the very impressive results of 2013, but already the signs are very positive,” Fiat Chrysler Group Australia President and CEO Veronica Johns says in a statement.

Audi Australia started 2014 with a record 1,685 units, led by the Q5 and Q3 SUVs and the new A3 Sportback.