May VFACTS: New car market begins recovery in May

Australia’s new-vehicle market showed the first signs of recovery last month, with official figures revealing the emergence of “green shoots” in terms of sales.

Official VFACTS figures released by the Federal Chamber of Automotive Industries (FCAI) today reveal the market was 35.3 per cent down in May, compared to the same month last year.

Sales of new vehicles are now 23.9 per cent down year-to-date, following the sixth consecutive monthly decline this year and the sharpest May decline since VFACTS reporting began in 1991.

A total of 59,894 vehicles were recorded for the month of May. Although that figure reflects an unequivocal plunge in sales, it is still markedly better than the 48.5 per cent decline registered in April, when only 38,926 vehicles were reported as sold.

As state and territory governments begin easing restrictions on travel and retail, there is renewed optimism that things are beginning to steady for the new car market.

FCAI chief Tony Weber said the federal government’s economic stimulus measures, including the Instant Asset Write Off scheme, had helped steady new car sales.

“The Instant Asset Write Off initiative has real potential to help stimulate the market, and we would like to see it extended in its current form beyond June 30,” Weber said.

“Anecdotally, we may be beginning to see some ‘green shoots’ in the marketplace. With people venturing out a little more, dealers have advised of a slight uptick in floor traffic through dealerships.

“Additionally, we are hearing from some brands that website traffic is on the rise – a sure sign of increased purchasing interest.”

Heading the steadying sales was Toyota, with no less than five vehicles finishing inside the top seven models.

The sales stalwart finished atop the ladder overall, too, with 14,466 sales helping the Japanese marque to a remarkable 24.2 per cent share of overall sales.

The Toyota HiLux was again the best-selling vehicle in the land (3527), finishing ahead of the Ford Ranger (2663) and the booming Toyota RAV4 (2345).

Elsewhere, Volkswagen rose to one of its highest finishes in history, with 2781 sales helping it to sixth outright on the sales charts.

It was a welcome reprieve in the premium segment too. Audi (-4.3 per cent) and BMW (-1.9 per cent) both made significant monthly recoveries, while Mercedes-Benz’s sales were down 32 per cent. BMW’s performance was enough to snare 10th outright in monthly sales.

Citroen sustained one of its worst months this year, with a meagre 10 sales representing an 82 per cent slump on the same period in 2019.

Holden sold 1689 vehicles for the month of May, as it slowly completes the roll-out of existing stock before exiting the Australian market entirely.

Honda finished 47.2 per cent in the red, with sales now slumping nearly 30 per cent year-to-date.

Reality finally bit for Kia, too, after its sales defied market trends in recent months. The Korean car-maker’s monthly tally fell 50 per cent on the same period in 2019, though Kia’s year-to-date sales remain better than the market, down 16.6 per cent.

MG defied market expectations yet again – albeit from a low base – with a welcome 14.5 per cent increase in monthly sales (664 vehicles). The Chinese car-maker has enjoyed a 62.5 per cent growth in sales year-to-date.

Similarly, RAM once again finished in the black with 333 monthly sales, a 42.3 per cent increase on the same period in 2019. The utility brand’s sales are up a remarkable 31.3 per cent year-to-date.

Weber hoped that upcoming end of financial year sales would entice more consumers back into dealerships.

Top 10 makes
Toyota – 14,466
Mazda – 5661
Hyundai – 4109
Ford – 3894
Mitsubishi – 3010
Volkswagen – 2781
Kia – 2760
Nissan – 2216
Subaru – 2023
BMW – 2013

Top 10 models
Toyota HiLux – 3527
Ford Ranger – 2663
Toyota RAV4 – 2345
Toyota Corolla – 1626
Mazda CX-5 – 1479
Toyota Prado – 1358
Toyota LandCruiser – 1260
Hyundai i30 – 1191
Mazda3 – 1052
Hyundai Tucson – 1019

* Source: VFACTS, Federal Chamber of Automotive Industries