Production Winding Down, Imports Dominate Australian Market

As the last Australian-built vehicles begin driving out the back door, record numbers of imports are pushing their way through the front door.

The Federal Chamber of Automotive Industries says a record-breaking year remains a likely prospect, even as July sales fell 1.1% to 91,331 units – still the second-best result ever for the month.

The performance took the year-to-date total up 2.8% from like-2015 to 689,471 units.

And in the month when Ford threw in the towel and ended pickup production in favor of Thai-built imports, Thailand became the leading country of origin for Australian sales for the first time.

Sales of Thai-built vehicles totaled 23,803 units in July, ahead of those from Japan at 23,359.

Thailand now is the leading supplier of Australia’s strong-selling light-commercial utility and cab-chassis vehicles, as well as some popular passenger vehicles.

FCAI CEO Tony Weber says just as sourcing is transitional, the composition of Australia’s vehicle market also is undergoing change, with car sales slowly declining in the face of a growing market demand for SUVs and LCVs.

Cars accounted for 41.6% of deliveries in July at 38,033 units, compared with 44.9% a year earlier. In the same period, SUVs rose to 33,817 for a 37% market share, up from 18.5%.

LCV sales gained 8.5% for the month to 16,874 units for an 18.5% share.

Small cars were Australia’s most dominant segment with 16,787 units in July, followed by medium and large SUVs with 12,716 and 11,264 units, respectively.

SUV sales rose 3.5% to 33,817, taking the year-to-date total up 10.3% to 256,210.

Toyota continued atop the market, delivering 17,465 units for a 19.1% share. It was followed by Mazda (8,460), Hyundai (7,603), GM Holden (7,071) and Ford (6,894).

Weber says despite the potential for a post-financial year market slowdown, particularly coming in the wake of a lengthy federal election campaign, buyer confidence remains strong.

“The ongoing strength of SUV sales especially among business buyers is bringing a healthy momentum to the market,” he says in a statement.

In fact, the first month of the new financial year saw business purchases of new vehicles climb 11.7%, with SUVs and LCVs leading the way.

Toyota’s Corolla was the top-selling vehicle in July with 3,427 units, followed by the Toyota Hilux (3,136), Ford Ranger (2,874), Hyundai i30 (2,216) and Toyota Camry (2,172).

After seven months, the car segment is down 5.6% at 285,182 units, the SUV segment up 10.3% at 256,210 and the LCV market up 9.7% at 129,707.

Toyota’s is the runaway sales leader, year-to-date, up 1.1% to 119,809 units for a 17.7% market share.

Mazda follows, up 5.3% at 69,433, ahead of Hyundai, gaining 5.7% to 61,953. GM Holden has faded to fourth, down 7.6% to 55,081 units, ahead of Ford, up 16.6% at 47,277.

Ford Australia says it will launch an all-new SUV based on the global Ford Edge about a year after Territory sales end in 2017 and when SUV sales are expected to pass car demand and reach 40% of the market.

Ford Australia President and CEO Graeme Whickman says that after doubling the number of SUV models since 2012, Ford’s SUV sales have risen almost 40% since 2012, driven by a doubling of the number of Millennials and Baby Boomers buying those models.

Toyota saw its best July in four years with deliveries up 3.7% year-on-year and selling more than twice as many new vehicles as any other brand. It was the fourth consecutive month of year-on-year sales growth.