What’s driving auto sales growth?
In the month of June 2015, new vehicle sales reached 125,850, representing a 6.4% increase on the month of June 2014. This means that over the year to date, Australia’s new car market has topped half a million, delivering an increase of 3.3% over the same period in 2014.
The significant growth is primarily attributed to:
Domestic passenger motor vehicle producers Ford, Holden and Toyota are winding down production based on their independent decisions to end domestic car manufacturing by 2017. None the less local manufacturers Toyota and Holden have maintained their relatively strong top five market share position.
The Toyota Corolla was the top selling car for the year to date as demonstrated in the below chart, with 21,750 sales to 30 June 2015. Contributing to this result were a number of standard feature upgrades across the range in recent months which now include; a reversing camera and improved interior design. The other top selling cars were Mazda3, Toyota Hilux, Hyundai i30 and Holden Commodore.
The Mazda3 and the Hyundai i30 continue to be popular choices due to drive away deals, fuel-efficiency and new technology. Toyota remains the market leader for the June 2015 YTD, followed by Mazda and then Holden.
|Top selling cars||June 2015||Top manufacturers||Market share|
Australia's new car sales delivered an increase of 3.3% over the same period in 2014.
|Segment||Sales units||% change YTD|
|Passenger vehicles||260,752||-3.1% (8,233 units)|
|Sports Utility Vehicles||199,671||13.8% (24,172 units)|
|Light commercial||102,684||1.9% (1,958 units)|
|Heavy commercial||15,320||3.9% (580 units)|
The SUV segment continues to see the highest growth up 13.8%, compared to the same period in 2014, indicating that here has been a continued move away from standard passenger vehicles towards SUVs. Although the SUV segment saw the highest growth, small passenger cars (mainly small hatches) and light commercial vehicles remain in the top five.
Looking across the Australian states and territories, the changes for the year to 30 June 2015 were as follows:
|State||Sales units||% change YTD|
|Australian Capital Territory||8,981||2.8% (245 units)|
|New South Wales||188,902||6.0% (10,617 units)|
|Northern Territory||5,884||1.3% (76 units)|
|Queensland||121,198||5.4% (6,162 units)|
|South Australia||34,685||-1.0% (363 units)|
|Tasmania||9,042||8.5% (708 units)|
|Victoria||155,495||4.0% (6,007 units)|
|Western Australia||54,240||-8.4% (4,975 units)|
The mining states including Western Australia and South Australia continued to decline over the period, which can be linked to job losses and falling commodity prices in the sector, which is impacting consumer confidence generally.
The variance between Western Australian and the rest of the country demonstrates the economic shift from the mining states to the service states, such as New South Wales, Victoria and Australian Capital Territory, which have seen considerable growth over the period.
For further details, please contact Brett Fowler, Partner of ShineWing Australia.