Australia’s LV Market Rides SUVs to Record July

Australian new-vehicle sales soared into uncharted territory as deliveries climbed 2.7% to a July-record 92,308 units.

The Federal Chamber of Automotive Industries says SUV deliveries rose 13.4% during the month and accounted for more than 35% of the new-car market.

The July result was up 2.3% from the previous record set in 2013 and was the fourth record month of the year.

Year-to-date, the Australian market was up 3.2% at 670,735 units.

The FCAI says Australia’s consumer preference for versatile vehicles that can meet work, home and lifestyle needs was highlighted by light-commercial vehicle sales rising 4.7% in July while car sales dropped 4.7%.

CEO Tony Weber says Australia’s fleet mix has changed significantly over the past decade.

“Ten years ago, passenger cars represented over 60% of new-car sales,” he says. “Now, light-commercial vehicles and SUVs represent more than 50% of the new-car market and passenger cars represent only 45%.”

With car affordability at record levels, private buyers purchased 6.2% more new vehicles in July than a year ago. Business purchases were up 4.5% and government buys down 8.4%.

Toyota continued to dominate the market with July sales of 16,840 units, well ahead of Mazda (9,356), Hyundai (8,511), GM Holden (7,895), and Ford (5,747).

After seven months, Toyota sold 118,554 units for as 17.7% market share. Mazda followed with 65,947 units, ahead of GM Holden (58,632), Hyundai (58,610), Mitsubishi (41,056) and Ford (40,557).

Toyota lifted its overall lead as Australia’s best-selling automotive brand to 52,697 units as its Corolla topped July sales with 3,573 units. It was the Corolla’s fifth month atop the sales chart.

Tony Cramb, executive director-sales and marketing for Toyota Australia, says strong demand and the company’s model-update plans will result in a strong second half, leading to Toyota’s 13th year in a row and 19th year overall as the industry sales leader.

Mazda saw its best-ever July with 9,356 deliveries and gave the automaker five straight months of record sales as well as a 14.6% market share. Its 65,947 sales year-to-date were well ahead of its old mark of 60,812 set in 2013.

Hyundai deliveries rose 1.9% to 8,511 units for a July record and a 9.2% market share.

Subaru notched another record July with sales rising 7.5% year-on-year to 3,354 units. The old mark of 3,253 units was set in 2010. The result left Subaru No.9 in popularity with 7-month sales of 25,013 units for a 3.7% market share.

Subaru Australia Managing Director Nick Senior says the result was driven by the unprecedented success of the new Outback. Its July sales were up 306.3% to 845 units.

“This year we have sold 6,310 Outbacks, an increase of nearly 312% on the YTD figure this time last year,” he says.