Queensland floods help buoy up 2011 vehicle sales

Last year was a big one for the Australian auto industry in many ways. This week saw the FCAI release the VFACTS result for 2011, revealing – against odds aplenty – an aggregate annual sales figure of over a million for just the fourth time.

At 1,008,437 it was down on 2010 by 27,137 units or 2.6 per cent. Hardly surprising, for a number of reasons, FCAI head Ian Chalmers told media at the survey’s launch this week. Natural disasters dogged the industry both locally and globally in the first half. In Australia there were the massive floods in south-east Queensland and then in Victoria.

Then came the calamitous earthquake and tsunami that demolished sizeable portions of eastern Japan, and thereafter the massive floods in Thailand, now one of the global auto industry’s most important points of supply for the Asia Pacific region.

By mid-year, predictions of a million were looking optimistic, with the global market experiencing serious supply shortfalls, particularly from Japan.

Then, in the second half, consumer confidence recovered enough to push local sales over the million mark to the surprise of many. Not least Toyota, the year’s big winner despite taking as big a hit as any in Japan. "We only saw any recovery in supply meeting demand towards year’s end," executive VP David Buttner told motoring.com.au.

FCAI chief Ian Chalmers said the auto industry appears to have been among the main beneficiaries of the Queensland floods. He noted that amid the second half rally, demand in that state was particularly strong – up 15.2% on 2010, more than twice the hikes experienced in NSW and Victoria. "It’s likely we can put this down to demand for replacement vehicles in the wake of the floods in the south-east," he told media.

The drop from 2010 figures was spread across all segments but the frenetically busy small car segment – the only passenger car segment to record upward movement – and SUVs. Particularly compact SUVs, which saw a hike of 5.8% on 2010.

Individually, the big winner was the Mazda3 – the first small four in several decades to assume the mantle of Australia’s best selling car. In knocking Holden’s Commodore off that perch, it also stole the title of the nation’s best selling small car from Toyota’s Corolla, which occupied that spot for eleven previous consecutive years.

Demand for SUVs is up 3.8 per cent – and 5.8 per cent for compact SUVs, representing the greatest increase of any segment. "I think that further reinforces the notion that Australians have replaced traditional big sixes with SUVs as the family car," said Chalmers. Demand for small cars is up 2.1 per cent. 4WD utes also continue to outpace market growth as a whole, reflected in Toyota’s Hilux taking out third place for individual model sales.

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