Australian & New Zealand June 2006 Car Sales Results: Toyota Tops Sales

[JoeT]

Small Cars Drive Half Yearly Motor Vehicle Sales

Federal Chamber Of Automotive Industries
5 July 2006
www.fcai.com.au

Strong sales of small cars have helped the automotive industry to an encouraging sales result in the first half of 2006.

Official VFACTS figures released today by the Federal Chamber of Automotive Industries show that in the six months to June, a total of 483,160 motor vehicles were sold in Australia.

The total, down just 3.4 percent on the record for the half set last year, has been achieved despite record fuel prices and an interest rate rise.

"The result demonstrates the considerable underlying strength of the economy and in particular the confidence of the business community," said the Chief Executive of the Federal Chamber of Automotive Industries, Peter Sturrock.

"Consumers seem to have shrugged off the interest rate rise and business vehicle buyers responded extremely well to the end of the financial year offers from the brands."

Sales of Light and Small cars finished the first half with solid June results.

Light car sales were up 9,298 vehicles or 19.6 % for the first six months compared with 2005.

Small car sales rose 2,994 vehicles or 2.8% for the period over last year.

The Small segment leader, Toyota Corolla, was also Australia's best selling car overall in June with 5,912 vehicles.

"The June results were a continuation of the strong trend towards smaller cars which has been evident for more than a year, and has clearly been accelerated by the recent substantial increase in fuel prices," said Peter Sturrock.

"In broad terms, consumers remain enthusiastic about new car purchases, although clearly they are making different choices within the market."

The FCAI believes passenger car sales will be boosted in the second half of the year by the launch of three new generation locally built passenger cars from Holden (Commodore) and Toyota (Camry and Aurion).

"We think there are lots of potential buyers – both private and commercial - who have been sitting out of the market awaiting these cars and the result will be a noticeable spike in sales towards the end of the year," said Mr Sturrock.


VFACTS INDUSTRY SUMMARY- JUNE 2006

The Federal Chamber of Automotive Industries issues the following summary for the retail sales performance of the automotive industry for June 2006, based on the industry's standard retail report, VFACTS.

The Federal Chamber of Automotive Industries advises that the forecast for 2006 is 980,000 vehicles.

The June 2006 industry volume of 96,448, is down, 5,697 vehicles or 5.6% on June 2005. June 2006 (25.0) had the same number of selling days as June (25.) 2005, resulting in a decrease of 227.9 vehicles per day.

The June 2006 market is up 12,991 (15.6%) on May (83,457 vehicles). June (25.) had 1.7 selling days less than May (22.0), resulting in an increase of 732.2 vehicles per day or 23.4%. The June volume equates to a SAAR of 0.966 Million vehicle sales.

The Passenger Vehicle Market fell by 3,755 vehicle sales (-6.2%) over the same month last year, the Sports Utility Vehicle Market, fell by 238 vehicle sales (-1.3%), the Light Truck Market, fell by 1,603 vehicle sales (-8.%) and the Heavy Commercial Vehicle Market fell by 101 vehicle sales (3.3%) over June 2005.

Toyota was market leader in June, followed by Holden and Ford. Year-to-date Toyota leads Holden with a margin of 3,220 vehicle sales, or 6.3 market share points.

The year-to-date 2006 market of 483,160 vehicles is running below the same period in 2005 by 3.4% or 16,918 vehicle sales. With the same number of selling days as 2005, the daily selling rate decreased by 114.1 vehicle sales per day. This equates to a YTD SAAR of .978 Million vehicles.

The Passenger Market at 295,448 vehicles is down by 9,444 vehicles (-3.1%). This equates to a YTD SAAR of 0.602 Million vehicles. Mixed results by segment show that, whilst increases were returned by, the Light car segment up, 9,298 (19.6%); the Small car segment up, 2,994 (2.8%); the People mover segment up, 95 (1.3%) and the Upper Large car segment up, 42 (1.3%), the Large car segment down, 19,217 (-22.0%); the Medium car segment down, 1,648 (-3.8%) and the Sports car segment down, 1,008 (-10.9%), failed to improve on their volumes for the same period last year.

The Sports Utility Vehicle Market at 87,449 vehicles is down by 6,967 vehicles (-7.4%), in year-to-date terms. This equates to a YTD SAAR of 0.174 Million vehicles. All segments except the SUV Luxury segment which is up, 1,028 (13.3%), failed to improve on the same period in 2005, with the SUV Medium segment down, 4,154 (-11.6%); the SUV Large segment down, 2,593 (-24.5%) and the SUV Compact segment down, 1,248 (-3.1%).

The Light Truck Market at 85,377 vehicles is down 760 vehicles (-0.9%), in year-to-date terms. This equates to a YTD SAAR of 0.169 Million vehicles. Mixed results are being returned by segment, with the Pick-up/Cab Chassis 4X4 segment up, 2,744 (8.6%) and the Light bus segment up, 515 vehicles (62.1%), are experiencing growth, whilst the Pick-up/Cab Chassis 4X2 segment down, 3,483 vehicles (-8.5%); the Van segment down, 515 vehicles (-4.5%) and the 2.5 Tonne truck segment down, 21 vehicles (-2.4%), failed to improve on their 2005 volumes. The Heavy Truck Market at 14,886 vehicles is up on the same period in 2005 by 253 vehicles or 1.7%.

MONTHLY RESULTS

The June result, although down, is the third highest month on record, behind the record month of June 2005 and June 2004 next best. The Passenger Vehicle Market is down 3,755 vehicle sales or 0.4%. The PMV market volume equates to a SAAR of 0.594 Million vehicle sales. The polarisation of the market continues with improved performances shown in the Small car segment, up 1,138 vehicle sales (5.4%) and the Light car segment, up 745 vehicle sales (7.6%), whilst new entrants in the Upper Large car segment have bucked this trend, with improve sales of 153 vehicles (29.1%), the Large car Segment, down 4,111 vehicle sales (-23.6%); the Medium car segment, down 1,143 vehicle sales (-13.2%); the Sports car segment, down 299 vehicle sales (-19.1%) and the People mover segment, down 238 vehicle sales (-14.7%) failed to achieve their 2005 volumes.

The Sports Utility Vehicle Market is down 238 vehicle sales or 1.3% versus June 2005. The SUV market volume equates to a SAAR of 0.182 million vehicle sales. Mixed results by segment show improved performances in the SUV Compact segment, up 254 vehicle sales (3.27%) and the SUV Luxury segment, up 131 vehicle sales (8.8%) whilst the SUV Medium segment, down 561 (-7.9%) and the SUV Large segment, down 62 vehicle sales (-3.5%), failed to achieve their 2005 volume levels.

The Light Truck Market is down 1,603 vehicle sales or 8.0% versus June 2005. The LCV market volume equates to a SAAR of 0.159 million vehicle sales. Mixed results were returned by segment, with the Pick-up/Cab Chassis 4X4 segment, up 278 vehicle sales (3.6%) and the Light bus segment, up 70 vehicle sales (32.6%), whilst the Pick-up/Cab Chassis 4x2 segment down 1,852 vehicle sales (-19.3%); the Van segment, down 68 vehicle sales (-3.0%) and the 2.5 Tonne truck segment, down 31 vehicle sales (-15.2%) failed to achieve their 2005 volume levels. The Heavy Truck Market is down 101 vehicle sales or 3.3%, when compared with the same month in 2005.

TOP TEN MAKES

Toyota gained the top sales position in the June monthly market with 22,392 vehicle sales, ahead of Holden with 13,607 and Ford third with 11,781. Toyota, with a market share of 21.7%, holds market leadership in year-to-date terms. Holden's June result sees it in second position with a market share of 15.4%, with Ford's market share of 12.5% placing it third. Mazda, with sales of 5,323 and with a market share of 6.7%, hold fourth position. Mitsubishi achieved 6,258 vehicle sales in June and with a share of 5.8%, is in fifth place ahead of Nissan, on 5.5% market share.

New Zealand June 2006 Car Sales Results

Motor Industry Association New Zealand
5 July 2006
www.mia.org.nz

New vehicle sales flatten out in June

Although June was the second highest month of the year so far for both new cars and new commercial vehicles, there are signs that the new vehicle market has reached a plateau after five years of unbroken growth.

June is traditionally a strong selling month, and while commercial vehicle sales of 2599 were virtually level-pegging with the same month in both 2005 and 2004, new car sales of 6392 were considerably down on the equivalent month in the previous two years. June 2005 (7713 new cars) was in fact the biggest month for new car sales in the last 17 years.

New car sales for the half year are 0.4% down on the equivalent period for 2005, while year to date new commercial sales are 5.7% down. This is the first time in five years that the new vehicle market has not been running ahead of the previous year.

“The new vehicle market is adjusting to some of the pressures that have been building up since late 2005,” said Perry Kerr, CEO of the Motor Industry Association. “The price of fuel, together with the forecast of softer economic growth, is having an effect on purchasing patterns, but we see it as a market adjustment rather than a doom and gloom situation. There’s still plenty of confidence out there, and the threat of the falling New Zealand dollar affecting prices will remain an incentive.”

Toyota took a huge step ahead of traditional rival Ford in June to consolidate their position at the head of the market, while Commodore and Falcon finished an uncustomary third and fourth in the individual model stakes for the month, behind Corolla and Mondeo.


Top 8 New Zealand Brands June 2006

Toyota - 1848
Holden - 866
Mitsubishi - 807
Ford - 767
Nissan - 643
Mazda - 487
Hyundai - 485
Honda - 408

Australian & New Zealand May 2006 Car Sales Results

[JoeT]

Large Car Market Not Dead Yet

AAP
6 July 2006
www.smh.com.au

Buyers are deserting big cars and four-wheel drives in droves.

But fears the market is dead and buried in Australia is premature, according to a senior car company executive.

Demand for the traditional big Aussie six, which is still the lifeblood of local car producers, is down 22 per cent in the first half of 2006 as consumers look for more fuel-efficient transport.

Sales of medium and large four-wheel-drives are down a combined 17 per cent to the end of June.

The light market with models like the Toyota Yaris, Suzuki Swift and Holden Barina, has been the big winner, jumping almost 20 per cent to the end of June.

And unlike other shifts in buying patterns prompted by oil shocks of the past, the current shift looks more permanent with petrol prices expected to remain high for the forseeable future.

Sales of large cars now account for just 24 per cent of the passenger market compared to 39 per cent six years ago.

"Our research over the last 12 months has indicated that there is a shift and this time it looks like it will sustain itself," says Toyota senior executive vice president of sales and marketing Dave Buttner.

"People have changed their lifestyle.

"They are changing their buying patterns in terms of the size of vehicles that they buy and they're also changing their decisions and choices in terms of what they actually use their car for."

But all is not lost, Mr Buttner says.

New model activity later this year will give the large car segment a much needed boost and help it recover at least some of its past glories.

Toyota will bring its new Aurion V6 to the market in the third quarter and Holden is gearing up to release its long-awaited VE Commodore.

"It is this new model activity that will re-stimulate and rejuvenate the market," Mr Buttner says.

A closer look at large car sales this year reveals the pain has been felt across the brands.

Demand for Australia's top selling Commodore is down 26 per cent, not surprisingly considering the current model is in run out mode.

But the Ford Falcon has also dropped 20 per cent while the Mitsubishi 380 is still well below its original forecasts and still marginally below the sales recorded by the superceded Magna last year.

Even the locally made Territory, Ford's crossover model which has been a success story for the company, has slipped by almost 20 per cent.

There's no doubt, Mr Buttner says, that the segment has "taken a hammering".

"But it's still the largest segment in the market place.

"There's still, in the Australian psyche, room for a large passenger vehicle.

"But what we're trying to bring into the segment is a large six-cylinder vehicle that will offer excellent fuel efficiency and great performance.

"All the attributes that you're looking for in a six cylinder car but hopefully we can reduce the whole-of-life cost."

So the outlook is not so much doom and gloom, he says, but an opportunity for new releases to bring buyers back to the large car sector.

Although to what extent, the jury is still out.

"Some people try to look into crystal balls and that can come back and haunt you later," Mr Buttner says.

"But we expect it to return to sit about 10 or 15 per cent below where it once was."

From Toyota's point of view, dealers are very keen to have the new Aurion in their showrooms, where it will allow the company to compete in one of the few market segments where it is not currently represented and one it has not targeted properly for years.

"In the past we really haven't had a car that's been able to hit this market head-on," Mr Buttner says.

"With this new Aurion we're confident, even though that large six segment has been in decline, that we can expect some resurgence in the market.

"Having a truly competitive product in the segment - that will mean incremental volume for us."

Will Holden's all new VZ Commodore save the day for large car sales?

[paul8488]

If Holden continues to sink at the same rate as Toyota rises, the gap will become huge in no time.

[BBDOS CV8]

Toyota's result is distorted by two factors: the old model Corolla being heavily discounted from an already low price to clear stocks, and also moving into a staple of rental companies, and the fact that Holden stopped building VZ sedans last month . My local dealer has almost no sedans left - normally they'd have more of them than antything.

Holden has been building retail stocks of VE models for a fortnight, the release being ten days off. The same thing happened at VS-VT changeover.

The market is collectively holding it's breath waiting to see what the new car is like: coupled with continuing bad news about petrol pricing propping up smallcar sales. Corolla is still selling less Corollas than Holden was Commodores at this time last year. If Holden had more Barinas which are heavily in demand despite a price rise, it probably would have beaten Toyota.

[Bravada]

I guess Holden is clearly hit by the model changeover, as well as the lukewarm reception of the GM DATs (Viva reportedly didn't set the market on fire, and we all know what happened when Kalorina's crash test results surfaced). They should've kept the Opels alongside Daewoo to get those few thousands sales more in the segment. Interestingly, Ford coupled with Mazda would have outsold both Holden and Toyota last year, but not that year.

[mikmak]

"But we expect it to return to sit about 10 or 15 per cent below where it once was."

Gee, that's an adventurous call Buttner. Its currently at 15 % below what it once was. Why do some people always have to say something when they have nothing to say?

[aball]

Originally Posted by mikmak

"But we expect it to return to sit about 10 or 15 per cent below where it once was."

Gee, that's an adventurous call Buttner. Its currently at 15 % below what it once was. Why do some people always have to say something when they have nothing to say?

I think he's suggesting that sales of large cars will return to about 85 or 90% or what they were. The 10 to 15% doesn't relate to the share of the overall market.

Oh, and BBDOS CV8, even though the Corolla is being discounted, the Viva is still cheaper and selling nowhere near as well. In fact, Astra AND Viva sale combined don't match Corolla

Toyota's lead could be to do with the fact that Yaris, Corolla, Hilux, Kluger all comfortably outsold Barina, Viva/Astra, Rodeo and Adventra and that Holden has no answer to RAV4, Camry, Prado, LandCruiser and Hiace. The Commodore/Ute/Statesman can't make up for all of those of those defeats. Come to think of it,now that Avalon's gone, does Holden actually have a car that outsells it's direct Toyota competitor? For that matter, other than Commodore/Avalon and a few months where the TS Astra outsold the previous gen Corollla, when was the last time a Holden outsold an equivalent Toyota? This is getting depressing

[racy]

Toyota is killing us. I wouldn't be surprised if they overtook GM next quarter. All around the world, their sales are up.

As much as I don't like their tactics, we've gotta admit, they are working.

[Driveshaft]

There's no doubt that Toyota is turning up the heat around the world. But rest assured, every giant will falter. I don't wish doom upon Toyota, but I'm certainly hoping that their image will be tarnished soon. They just made #7 on Wired's Top 40 list, and they were 8 last year. It doesn't mean much I guess, but it shows that the big wheels are turning. And not slowing down.

[Geotpf]

I've seen Australia and New Zealand (especially New Zealand) used as examples of what the marketplace would look like if one was to ignore nationalistic factors (IE, the tendency to want to buy cars made by a domestic manufacturer), because they have no domestic manufacturers (although Holden is a Aus/NZ only nameplate-but that counts about as much as Scion being a US only nameplate). I truely believe half of GM's and Ford's (less so for Chrysler, now that they are German owned, but still somewhat) sales in the US is due to national pride and not because they make the best vehicles.

That being said, Mitsubishi is in third place in New Zealand? That's very odd. There is probably no be no other market where they are doing so well.

[Psionic Wibbly]

Originally Posted by Geotpf

I've seen Australia and New Zealand (especially New Zealand) used as examples of what the marketplace would look like if one was to ignore nationalistic factors (IE, the tendency to want to buy cars made by a domestic manufacturer), because they have no domestic manufacturers (although Holden is a Aus/NZ only nameplate-but that counts about as much as Scion being a US only nameplate). I truely believe half of GM's and Ford's (less so for Chrysler, now that they are German owned, but still somewhat) sales in the US is due to national pride and not because they make the best vehicles.

That being said, Mitsubishi is in third place in New Zealand? That's very odd. There is probably no be no other market where they are doing so well.

Holden and Ford are considered as local and domestic in australia as Chevy and Ford are in th USA and Canada; you can ask any of our Aussie mates on this forum and they will enthusiastically concur with me on this. toyota, honda etc are seen as japanese and not australian!

[Psionic Wibbly]

If you want a true perspective on what a european market place would look like-look no further than ireland;

small prosperous country;

well educated and tech savvy workforce;

not encmubered by baggage about "domestic cars and foreign cars" - all cars are foreign even historically as ireland never manufactured any cars;

people therefore are hence assumed to buy their cars on merit.

the top seller there is toyota the only other place where it is the top selling brand is poland - at least it was so in may 06

[BBDOS CV8]

Originally Posted by aball

Oh, and BBDOS CV8, even though the Corolla is being discounted, the Viva is still cheaper and selling nowhere near as well. In fact, Astra AND Viva sale combined don't match Corolla

Toyota's lead could be to do with the fact that Yaris, Corolla, Hilux, Kluger all comfortably outsold Barina, Viva/Astra, Rodeo and Adventra and that Holden has no answer to RAV4, Camry, Prado, LandCruiser and Hiace. The Commodore/Ute/Statesman can't make up for all of those of those defeats. Come to think of it,now that Avalon's gone, does Holden actually have a car that outsells it's direct Toyota competitor? For that matter, other than Commodore/Avalon and a few months where the TS Astra outsold the previous gen Corollla, when was the last time a Holden outsold an equivalent Toyota? This is getting depressing

Commodores outsold all Toyota models every year for the last decade - even with the aging VT-based Commodore. Toyota has barely turned a dollar on it's Australian manufacturing operation. If it weren't for the export offsets it gets for Camrys, it would be an importer. Look at Corolla - built here, then not. Had to be severely decontented and price reduced by nealry 20% to get back on top of Astra sales. Resale as a result, worse than many GM cars. also due to cars like the Getz which seriously compete with s/h small Japanese cars. Toyota's next Camry is not being offered as a V6 because it battled the Magna for a distant third in the V6 market, despite trumpeting how it and the Avalon were going to take Holden apart.

Avalon - wow, the car supposed to turn the Oz big car market on it's head. It garnered a all-time high of 6% of sales and the last ones can now be seen doing Taxi duties. Can there be any doubt that the Aurion aka Avalon mk II will do the same? Big AWD sales - stalled worse than Commodore sales, so Playdough and Landcrab are not going to keep Toyota up there.

There are no VZ sedans being produced - no cars, no sales. Barinas they can't build quick enough - factory which also makes Aveos is maxed out. Why they are going to be making them in Poland.

The only reason Toyota is on top in Australia is because it sells more 4-wheeled whitegoods, small commercials, than anyone else. That is also the segment of the market which makes the least money because it's fleet and stripped work vehicles. Even there, Kia and some other manufacturers are giving them grief with keen pricing.

I don't underestimate Toyota at all. If they can, their dream is to be like Microsoft with no real competitors and it's known they are playing an endgame in Australia where they cut profits to the bone to hurt Holden and Ford - they're already killing Mitsu. But a one month blip in the Oz market due to the confluence of factors is not a reason to start preparing obituaries. Holden unlike most of the rest of GM is profitable, has been since the late 80's. The export $$$ from engines alone is a solid bedrock.

People who are potentially Holden or Ford buyers have paused to see what VE is like.

[growler]

Just a blip. I remember in the late 90's just before the VT Commodore and AU Falcon were launched the Hyundai Excel was the top selling car one month.

[Bravada]

I truely believe half of GM's and Ford's (...) sales in the US is due to national pride and not because they make the best vehicles.

It's not called "national pride". It's called Avis.

not encmubered by baggage about "domestic cars and foreign cars" - all cars are foreign even historically as ireland never manufactured any cars

Aren't you forgettin' sumfin'?



Apart from that small factual inaccuracy, that's a very good example.