June sales boom

The Australian new-car market bounced into recovery in June, as buyers embraced the Federal Government's tax incentives.

Official figures to be released midday tomorrow (Friday July 3) are expected to show that June 2009 marked the end of a 12-month new-car sales decline.

Vehicle sales have been falling since July 2008 as the tax on luxury cars was increased and the Global Financial Crisis started to take effect -- and sales each month this year have been weaker than the same month last year.

But the rate of sales decline eased in April and May as consumer confidence improved and as the Federal Government announced tax incentives to business buyers.

And now, it seems, June has finally sparked a turnaround.

According to industry sources, June sales equated to an annual average of more than 1 million vehicles. By comparison, the industry has forecast 850,000 sales this year after eclipsing the 1 million mark last year.

According to unofficial data, sales for the month eclipsed the 100,000 mark for the first time since June 2008.

The official figures are expected to show the market was down 3.5 per cent compared to last June (when 106,541 vehicles were sold), which would put the June 2009 total at about 102,800 -- a reduction of just 3700 sales for the same month last year.

However, it is worth noting that June 2008 was an all-time record month, sparked by buyers rushing to beat the increase in Luxury Car Tax (more here).

Figures for June 2009 are expected to show passenger car sales were down 9 per cent but light commercial vehicles were up 12 per cent.

Light commercial vehicles typically have strong sales in June because of the high number of business buyers but it seems more than ever before were prompted to buy because of the tax incentive.

However, several luxury brands are expected to have posted all time sales records including Volkswagen, Mercedes-Benz and Audi.

BMW is understood to have scored another type of record: its biggest month of customer orders, because it could not get enough cars to supply. This should see the brand post a solid result in July.

Meanwhile Holden is expected to post its first month of sales growth in more than a year. Sales of Holden's Commodore are expected to be up by 11 per cent on the same month last year, and Holden ute is believed to have had its best month ever.

Sales of the Ford Falcon are expected to be up, too, but sales of all Ford vehicles overall remained relatively stable.

Market leader Toyota is expected to post 16 per cent sales drop, but should have two vehicles in the top five sellers list, including possibly HiLux as the top seller for the entire market.

Meanwhile Japanese maker Mazda was the first brand to officially confirm its monthly sales result. It reported overnight that June was Mazda's best month in Australia in the history of the company, with 8406 sales compared with the previous best result of 7565 in March 2008. It was the best ever month for Mazda3 and the BT50 ute.

Korean maker Hyundai is also expected to post strong sales growth in June, up by as much as 40 per cent.

Meanwhile, the industry is now embracing for a sales "hangover" in July, as many buyers brought their orders forward to meet the June 30 end of financial year deadline.

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