February record sets market for appointment with million

Record sales in February have set the scene for the local new car market to again challenge the million-car milestone.

Retail sale figures released this week by the Federal Chamber of Automotive Industries (FCAI) showed that 83,740 motor vehicles went to new owners last month -- an increase of 8.1 per cent, or almost 6300 vehicles, on February last year.

The total easily eclipsed Australia's previous record February -- 2005 when 81,141 new vehicles were sold.

The February VFACTS stats came on top of an all-time record January and has the market up 9.0 per cent year-to-date at the end of summer.

Industry pundits are still calling the market variously at between 960,000 and 980,000 vehicles but the seasonally adjusted annual rate (SAAR) has total annual sales running at approximately 1,070,000 vehicles.

Although the latter half of this year will see Aussies go to the polls for a Federal election, such a strong start to the year has most manufacturers and importers looking hard at their market projections.

"It's too early to call the market but there's already indications that March will continue at record levels," one industry insider told CarPoint/Carsales.

"If the first quarter ends up 8-10 per cent, then the million car mark could be a reality," the source said.

"The car industry has really jumped out the blocks this year thanks to the combined effects of new model activity and intense retail competition," commented FCAI boss, Peter Sturrock on the release of the February stats.

"It's clearly a buyer's market at the moment and consumers seem to have put aside any concerns about interest rates they might have had and responded to the great deals on offer," he said.

Mr Sturrock said the February sales record was "broadly based".  Large passenger cars near matched their 2005 performance for the first two months of the new year and SUVs were up 0.1 per cent on the same period last year.

Medium SUVs and 4x4 pick-ups (and cab chassis) were both strong segment performers suggesting, said Sturrock, consumers had come to terms with fuel pricing.

In a return to form for large cars, Holden Commodore was Australia's best-selling model in February with 5544 sales.

The Ford Falcon bounced back from its January low to log more than 3000 sales and Toyota's Aurion 1817 sales were its best since the big front-driver's launch last October. Mitsubishi's 380 logged 1014 sales -- three units up on the same month last year.

Second in outright stakes was Toyota's Corolla (3591).

Toyota was also clearly the winner in overall market terms. Already over 4200 cars up on the same time last year YTD, the Big T (34,840) is more than 10,000 units up on the number two brand, Holden (24,341) after just two months.

Mazda is the other performer in terms of the volume brands. The largest full-line importer, the Zoom Zoomers are 19.6 per cent up year to date with just short of 13,000 units sold.

The Mazda3 continues to be a stand out with better than 3000 sales for the month.

With 16,611 retails to the end of February, Ford is 7.0 per cent off its 2006 mark but is showing positive signs. Territory is up YTD as are Fiesta, Focus and Escape.

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