Better cars the key, says Holden

GM Holden has countered a survey showing declining interest in Australian-made models among younger people by arguing that building better cars is the key to shaping buyer intentions.

Roy Morgan Research published results of an ongoing consumer survey this week showing that while local cars appeal strongly to ‘battler’ and ‘golden year’ car buyers, generally younger shoppers in the middle of the market prefer imports such as Honda and Volkswagen.

These buyers, dubbed metrotechs by Roy Morgan, usually live in the inner-city area, have above-average income and are well educated.

The positive side of the survey for Holden was that it ranked second overall on a list of cars survey participants would consider buying, behind Toyota.

“I’d have to look at it (the survey) and understand what it means, but at the end of the day what we have to do is deliver great cars,” Holden Sales and Marketing Executive Director Phil Brook told motoring.com.au.

“If we deliver great cars then people will consider us -- I have no doubt about that.”

Brook also pointed to an improving sales share for Holden as 2013 has progressed. This year Holden has introduced a series of new and updated models including the VF Commodore, the 2014 Cruze, Malibu mid-size sedan, Trax small SUV and updated Colorado.

In the first six months of 2013 Holden’s average sales share per month was nine per cent, according to official VFACTS data. The average lifted to 11 per cent in the third quarter and in October it hit 11.4 per cent.

“What we are seeing is an increase in purchase intention for us -- the new car intender,” Brook said.

“When we look at the figures and the data that we have got around intention; we deliver great products and our intention improves.”

Brook argued the swing to foreign brands by Australian buyers wasn’t just limited to the car industry.

“It’s no different to tourism. Instead of going to the Gold Coast you go overseas.”

“There are very few people who buy a car – or any product -- just because it is Australian. That is why a lot of those buy-Australian campaigns haven’t worked very well.

“You have got to deliver great products and we work on delivering cars that look great, drive great and are great value, and we are pushing the technology side of things too.”

Despite the second-half pick-up, Holden’s overall sales tally continues to run behind 2012, which at 114,665 sales was the lowest result for the company since 1993, when it sold just 96,500 vehicles.

Sales of cars built in Australia by Holden, Toyota and Ford -- which pulls out of manufacturing here by October 2016 -- have fallen 17 per cent year-on-year to just 10 per cent of the total market.

Brook said the lift in Holden's market share was evidence that much of the negative publicity generated by speculation about its future as a local manufacturer was not having an impact on potential buyers. He applied the same argument to any potential backlash on Holden due to it asking for a larger investment from government to guarantee its future.

"In the first half of the year there was a bit of noise and we had a nine per cent share. In the second half of the year in excess of 11 per cent share and there was much more noise," said Brook. "We are getting on with business."

Read the latest news and reviews on your mobile, iPhone or PDA at carsales' mobile site...

Don't forget to register to comment on this article.