June VFACTS: New-vehicle market bounces back

Australia's new-vehicle market made an emphatic recovery in June, finishing just 6.4 per cent down year-on-year despite the ongoing effects of the coronavirus pandemic.

VFACTS figures released by the Federal Chamber of Automotive Industries (FCAI) today show 110,234 vehicles were sold Down Under last month -- down from 117,817 in the same period last year.

The result marks a significant uptick in sales amid the COVID-19 landscape, coming off the back of a 48.7 per cent freefall in April and 35 per cent dip in May. Overall, the market is now down 20.2 per cent year-to-date compared with 2019.

While some industry experts have questioned how many reported registrations were sales to real customers as opposed to dealer demonstrators, June is typically a strong sales month for the industry as businesses seek tax savings and car-makers offer bonuses to dealers to clear stock by the end of the financial year.

Also helping spur sales was the government’s Instant Asset Write-off scheme, which allows businesses to deduct the full cost of purchases for assets to the value of $150,000 and has since been extended to December.

In June, it was Toyota that capitalised best with 22,867 sales overall (up 7.9% on June 2019), while Mazda came in second (9420) and Hyundai was third (7727).

In terms of individual models, the Toyota HiLux won the sales race with a phenomenal 6537 sales, to edge ahead of the Ford Ranger (5329) and Toyota Corolla (3008). Six months into the year, the HiLux also leads the year-to-date sales race with 22,348 sales.

Hyundai Australia chief operating officer John Kett said the June result had encouraged the Korean car-maker, matching its pre-COVID forecast.

“We went into the year with a view the industry was going to be down 10 per cent -- that was our feeling in the late stages of December,” Kett said during a recent briefing.

“Of course, COVID-19 came along and that was tough. We saw historical lows in April, some recovery in May and then some encouraging signs in June with the easing of the lockdown. Our 2020 June order ride is tracking in line with June 2019.

“Absent are the large fleet orders, but we feel quite well positioned. Just the narrative and tonality from dealers – there has been an incredible improvement compared to what it was like as we exited March into April.”

In large part, it was business buyers who drove the June recovery with a 6.3 per cent improvement on June 2019. Private, government and rental buyers finished down 7.9, 16.0 and 75.7 per cent respectively.

The luxury market also bounced back in June. Mercedes-Benz snuck its way into the top eight with 4437 sales, a 31.4 per cent increase on June 2019, while BMW (3307) finished 32 per cent higher than June 2019 and Audi finished 84.6 per cent higher (2027) as it it enjoyed the benefit of more stock in Australia.

RAM was once again a huge winner in June, netting a remarkable 604 sales to take push its year-to-date tally 54.6 per cent higher than last year.

Conversely, Honda’s sales finished 45 per cent in the red against June 2019, while Nissan’s tally was down 22.7 per cent, pushing its year-to-date sales down by 26.3 per cent versus 2019.

Holden managed 1912 sales as it limps towards its Australian exit later this year.

Top 10 makes
1. Toyota - 22,867
2. Mazda - 9420
3. Hyundai - 7737
4. Ford – 7624
5. Mitsubishi – 7419
6. Volkswagen - 5737
7. Kia – 5727
8. Mercedes-Benz – 4437
9. Nissan – 4260
10. Subaru – 3775

Top 10 models
1. Toyota HiLux – 6537
2. Ford Ranger – 5329
3. Toyota Corolla -3008
4. Mitsubishi Triton – 2721
5. Toyota RAV4 – 2632
6. Mazda CX-5 – 2530
7. Toyota Prado – 2374
8. Hyundai i30 – 2368
9. Hyundai Tucson – 2206
10. Kia Cerato – 2016