Dwindling Car Demand Flattens Oz March Result

Growth in the Australian new-vehicle market paused in March with sales easing 0.5% to 104,512 units, but the first quarter finished up 2.8% at 285,328.

Federal Chamber of Automotive Industries CEO Tony Weber attributes most of the slight decline in March sales to a drop in demand for cars.

Car sales for the month were down 9.4% year-on-year to 43,642 units, while sales of SUVs rose 8.3% to 38,437 and light-commercial-vehicle deliveries climbed 7.1% to 19,741.

“This is in line with the trend over the recent period, with significantly increased popularity of the SUV vehicle range,” Weber says in a statement. “The features of these vehicles are certainly attracting the mainstream Australian buyer.”

After three months, SUV sales were up 13.8% to 108,369 units and 38% of the market. LCV sales rose 10.3% to 51,724 units for 18.1%, while the car segment was down 8.0% at 118,424 (41.5%).

Business and government purchases of SUVs year-on-year in March were up 15.1% and 8.3% respectively, while business and government car buys fell 5.4% and 17.8%, respectively.

Toyota maintained market leadership in March with 17,849 deliveries for 17.1% of the market, followed by Mazda (10,228), 9.8%; Hyundai (9,700), 9.3%; GM Holden (8,355), 8%; and Mitsubishi (6,519), 6.2%.

The Hyundai i30 was last month’s top-selling vehicle with 4,198 units, followed by the Toyota Hilux (3,897), Toyota Corolla (3,612) Mazda3 (3,145) and Ford Ranger (2,960).

Toyota consolidated its lead in the Aussie market pushed ahead by the new-generation HiLux. It notched 3,897 sales for the month, driving its 3-month total to 9,499 units – 18% ahead of its closest rival and up 11% year-on-year.

Warming Up to Mazda

Mazda, meantime, had its best-ever start to a year, selling 10,228 units in March and, for the first time, topping four of the most popular sales segments. It also was the first time Mazda surpassed 10,000 units for three successive months.

With first-quarter sales up 7.7% to 30,449 units, Mazda claims a 10.7% slice of the Australian market.

Subaru set a monthly sales record with March deliveries up 20.6% to 4,825 units for a first quarter up 13.9% at 11,768 units.

Subaru Australia Managing Director Nick Senior says the result makes Australia the second-biggest export market for parent Fuji Heavy Industries after the U.S.

“Our market share at the end of quarter one is the highest on record,” Senior says in a statement. “We also think it is the strongest Subaru share in the world outside Japan.”

Elsewhere, Ford Australia’s year-to-date sales were up 13.7% to 18, 641 driven in part by the continued popularity of the Ranger pickup.

But the company says the Mustang also has become an instant sales halo and 2,000 extra Mustangs now are earmarked for Australia and due to arrive toward the end of 2016.

Demand for the iconic model has surpassed predictions, with 1,500 more orders placed than expected.