
'Resilient' is a word that aptly describes the Australian automotive industry. Thanks to a spoonful of stimulus administered by the federal government in the form of tax breaks for business, the car companies and their dealer networks have enjoyed a return to sales growth when many other markets are still labouring under the effects of the Global Financial Crisis.
And just as the residual fleet purchases driven by the tax incentive began to dry up, the news earlier this year that Australia had avoided technical recession bolstered consumer sentiment. VFACTS figures show that private buyers returned to the new-car market in significant numbers, to the delight of the government -- if not necessarily the erstwhile prime minister.
Working the way through the alphabet, Audi comes up first among the winners. The German prestige importer has sold 7227 vehicles to date for the year, well ahead of the 5611 units sold for the first six months of 2009, despite last year being yet another record year for growth. Audi's sales over the past several years have defied belief. Most of the company's added growth this year has derived from the A5 Sportback and the Q5 SUV. Audi's June sales figure of 1342 set a new monthly record and the sales for the year to date are higher than the sales for the full year of 2007, which provides some sense of how fast the Audi brand's sales performance is accelerating in this market.
BMW is ahead of the first half of 2009 result (8785 for 2010, versus 8021 for the first half of 2009), but sales dropped back in June. The X1 has added incremental sales for this year and contributed over 200 units of the importer's 1651 sales in June, but that was 293 fewer than June 2009.
Ford is 2740 units ahead of last year's result for the year to date. Sales last month were slightly down on June 2009's, but based on the year to date, Falcon sales are up by 1510 units, Fiesta is up by 1494, Mondeo is up by 360, Ranger 4x4 is up by 1146 and the Territory is up by 943. Other models in the range have lost sales, but only the Focus and the Falcon Ute have experienced a slide greater than 1000 units for the year.
On the basis of both June and year to date sales, Holden is kicking up the heels. 68,657 for the year to date is a 12,505-unit gain over 2009 and the local manufacturer posted a June figure of 13,836 -- 1669 units up on June last year. Leading the charge for Holden were the Barina, the Captiva and the Cruze. Commodore (23,125) is 1538 units ahead of last year's sales to June, but sold 51 fewer cars in June than during the same month last year. The Ute is slightly ahead for the year (5889 vs. 5823), but also down for the month (1136 vs. 1577).
Holden's Sales, Marketing and Aftersales Executive Director, John Elsworth, welcomed the news from VFACTS and also applauded the Cruze for notching up 25,000 sales since going on sale a year ago.
"Cruze shot straight into the top 10 of Australia's best-selling passenger vehicles in its first full month of sales and that strong demand has continued, and it has been embraced across a range of age groups and buyer types," he said.
What can one say about Hyundai? The volume-selling importer must have been taking growth hormones. Sales for the year to date total 42,371 -- 12,436 or 41.5 per cent ahead of the 29,935 figure for the same period in 2009. June sales were also slightly ahead of last year's. The i30 has been the stand-out model for the brand this year, but the new products, the i45 and ix35 are doing their bit -- especially against the Sonata and the Tucson they respectively superseded.
"Last month was [a] terrific month for both sales and awards, with a number of Hyundai vehicles being recognised in the 2010 Vehicle Operating Costs Surveys conducted by the NRMA, RACV, RACQ, RAA, RAC and RACT motoring clubs," said Damien Meredith, Hyundai's Director of Sales.
"It's terrific that our newer models like the i30 and the ix35 compact SUV are gaining such important recognition by these leading organisations. Our new model roll-out continues in July with the launch of the new i20 compact hatch, which will be a highly competitive entrant to the light car segment."
Isuzu Ute and Jaguar have both registered increased sales for the year to date, although Jaguar's sales for June slipped back from 96 last year to 80.
At 3131 units sold for the year to date, Jeep is 1055 units ahead of last year's sales. The American offroad brand is also 91 units ahead for its June sales figure of 574. Both the upgraded Patriot and the evergreen Wrangler are pulling their weight to overcome the loss of the Commander and the Compass from the local range.
Kia's results for 2010 are also looking promising. 12,430 sales for the year to date place the company 2492 units ahead of last year's tally. With June sales of 2820, the importer is nearly 800 units up on the same period last year. Cerato Koup and the upgraded Rio are the big sellers, with the new Sorento pulling in some incremental business too.
Land Rover (2482 vehicles sold) is 648 units ahead of last year's sales to June. For the month of June itself, the British offroad brand sold 521, versus 377 the year before. The Discovery and the Range Rover Sport are selling in stronger numbers for the year.
Lexus is 552 units ahead for the year, sitting on 3278 sales. During June, the prestige importer sold 657 -- 199 better than June '09. Most of those additional sales came from the IS250 and its convertible derivative, the IS250C.
The majority of Mazda's sales increase for this year (42,871 -- 4268 units better) comes from the CX-7 SUV and, to a lesser extent, the Mazda3. Both vehicles have been upgraded recently and that is reflected in their improved sales. The importer has recorded its best ever result for the first six months of any year.
"For this magnificent result we are again indebted to our Dealer group -- without the passion, energy and commitment they show for the Mazda brand and its product we would not be in such a fortunate position," said Mazda MD, Doug Dickson.
"Of course we are nothing without fantastic product to sell. And in an effort not to become complacent in this area, we will continue to focus on ways to improve and bring fresh appeal to our product line-up.
"Given the incredible start we've had to the year and with private buyers slowly coming back to the market we're confident that this year Mazda Australia can achieve its best ever calendar year."
Mercedes-Benz claimed that its retail sales in June represented a new record for the marque in Australia. Selling 2410 vehicles last month (including light commercial vehicles), the importer sold 176 more than in June 2009. Without the commercial vehicles, Benz sold 1976 passenger cars, a record result in the company's 52-year history in Australia.
For the year to date, the company has sold 10,966 vehicles (of which 9009 were passenger vehicles) -- 1568 vehicles up on the same tally for 2009. Just as the company's 'Let's Talk' campaign propelled Benz out of the Global Financial Crisis last year, this year's 'First Choice' campaign has come up with the goods.
"The whole team at Mercedes-Benz Cars is very excited that our First Choice strategy focusing on customer value has delivered such an outstanding result," said Horst von Sanden, the MD of Benz in Australia.
"From B-Class through C-Class, E-Class and S-Class we have consolidated our position as the leading prestige brand with our customers and also in the market year to date. This is our fourth month of clear sales leadership in the luxury/prestige segment and with exciting product coming we are confident we will achieve our best ever year in Australia in 2010.'
For 2010, boutique brand MINI is over 300 units ahead of the same period in 2009; 1233 versus 916.
Mitsubishi is over 5300 units up for the first half of this year. The vast majority of that growth came from the Lancer small car, which is nearly 4000 units up on the same time last year. Both the Outlander and the Pajero -- plus the new-to-market Challenger -- are boosting the numbers too.
Nissan is nearly 6000 units up for the first half of this year -- 32,830 versus 26,954 vehicles sold. Dualis, Maxima, Micra (in runout), Navara 4x4 and X-TRAIL have all contributed.
Proton, with 982 sales for the year, is actually 316 units ahead of the first half of 2009, but it was the introduction of the ultra-budget S16 sedan -- selling 537 units so far in 2010 -- that saved the importer's numbers from actually looking very sad. Skoda too was a nominal winner, but unlike Proton, the sales increase of 161 units for the year (477 in 2009 to 638 for 2010) was spread across the Octavia, the Scout and the Superb.
Subaru's sales total for the first half of 2010 (21,009 versus 19,009) was 2100 units ahead of last year's. The new Liberty and Outback combined were nearly 3000 units ahead, but the Forester, Impreza and Tribeca have fallen back.
Suzuki has skipped ahead of last year's pro rata total, with 2315 added sales for a year-to-date figure of 12,327 units. That figure is a 23 per cent gain on last year's figure and two per cent better than the record-breaking half-yearly result in 2008.
"These results confirm Suzuki's position as one of the fastest growing brands in the country," said Suzuki Australia General Manager Tony Devers. "We are well on track to meet our target of 25,000 vehicles and 2.6 per cent market share."
At 107,470 vehicles sold for the year to date, industry champ Toyota is 13,237 units ahead of the same period last year. Camry (bolstered this year by the Hybrid variants) and the new for 2010 Prado both edged up in sales by nearly 3000 units for the first six months, but Toyota posted at least incremental gains across most of its product range. Aurion, Avensis, Prius and Tarago were the only Toyotas that haven't fared better in the market than for the first six months of last year.
"Sales have picked up in the mining industry and among rental fleets, while private buyers have also returned to the market, aided by improved economic conditions and strong competitive retail offers," said Toyota's senior executive director sales and marketing David Buttner, commenting on the industry's performance generally, during 2010.
Volkswagen (19,306 sales for the first half of 2010), was almost 3400 units in front of its score for the same time last year. The new Golf accounted for roughly two thirds of that figure -- up by 2267 to 8560 for the year so far. Tiguan, with the diesel variants joined by petrol variants late last year, was 1433 units ahead. Overall however, VW's models scored a series of hits and misses.
Volvo sold 2432 cars during the first six months -- just 202 units better than for the same period last year. Half of the importer's product range registered fewer sales this year than for the first six months of last year, but the overall total improved through added sales from the XC60 (234 better than in 2009).
Alfa Romeo (-70), Citroen (-36), Chrysler (-486), Dodge (-780), Fiat (-367), Honda (-145), Peugeot (-181), Porsche (-32) and Saab (-324) all saw sales totals shrink, comparing the first half of 2010 with the same period in 2009. The two Chrysler brands (Chrysler and Dodge) have effectively shed half their unit sales within the 12-month period, but can blame at least part of that on supply issues following Chrysler's Chapter 11 bankruptcy proceedings. Two of the three Ateco brands (Alfa Romeo and Citroen) are stagnating in what is a booming market, but of more concern to Ateco is Fiat, the Italian marque losing over 34 per cent of its sales from last year.
Honda is in a better position and will fight back with the new Insight hybrid due late in the year. Saab is, for the time being at least, a lost cause. Until a new distributor is appointed, the final stock is trickling out the doors of GM-appointed dealers and at such a slow rate that the brand could be considered moribund.
The upshot of all this is a curiously volatile market. With America and Europe facing on-going economic problems -- and a federal election scheduled here for late August -- the market may see the fall-out of at least two brands (Saab, Hummer) and the possible scaling back of others. So despite the rounds of high-fiving and back-slapping for the first six months of this year, we think the second half will be the real test...
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