Sales a record but million mark missed

The million sales mark is safe -- for 2005 at least. That's the upshot of the release of the VFACTS total new vehicle sales figures for 2005 released officially at 12 noon today by the Federal Chamber of Automotive Industries (FCAI).

And while the total number was 988,269, a record and 3.5 per cent up on 2004, it will be the fact that the much vaunted 1,000,000 vehicle mark was not breached that will take the lion's share of the limelight.

Predictions that the total would break the million were coming hard and fast at mid-year from many quarters. Though the FCAI points out that its initial forecast of 980,000 was proved correct, it too was sprouting the million vehicle mantra during 2005.

In the end a substantial adjustment in the marketplace in the last quarter of 2005 curtailed the runaway sales numbers that yielded eight record months in succession.

That said, 2005 was still the fourth successive year of market growth. Demand since 2001 has increased by more than 200,000 vehicles or better than 27 per cent.

According to the FCAI's VFACTS stats, passenger motor vehicle sales were up 3.2 per cent in 2005 totalling 608,804 units. Demand for SUVs was up 4.2 per cent to 180,292 and light commercial vehicles were 2.6 per cent ahead of 2005 at 167,878.

FCAI chief executive Peter Sturrock said the market would be equally strong in 2006 and confirmed the Chamber’s assessment of 980,000 vehicle sales for the second year in a row.

“While general economic conditions will soften in 2006, the motor vehicle market will stabilise at its current level of strength,” he said.

According to the FCAI, sales of small cars exceeded 200,000 for the first time in 2005 -- up almost 19 per cent on 2004. The 215,324 units accounted for 35.4 per cent of the total passenger vehicle market.

Demand for large cars diminished by 15.7 per cent to 153,244 vehicles.

Toyota was the country’s top-selling brand in 2005 with a record 202,817 sales – marginally greater than its 2004 winning total of 201,737. Its Corolla was the country’s top-selling small car with an all-time record of 46,415 sales.

Holden’s Commodore was again the country’s largest-selling individual model but with a reduced 66,794 deliveries, down from 79,170 the year before.

“There has been a seachange in market demand,” Mr Sturrock said. “Private buyers and fleets are adjusting their purchasing patterns to suit their changing needs, including their views on the effect of petrol pricing and running costs.”

Mr Sturrock said Ford’s success with the SUV Territory had been one of the highlights of the 2005 model year. Demand for Territory reached 23,454 and the vehicle was instrumental in leading the 19.6 per cent growth in the medium SUV market.

Toyota, Holden and Ford were the three top-selling makes in 2005, accounting for better than half total demand (51.2 per cent).

Mazda and Nissan swapped their 2004 positions with Mazda moving to fourth place for the first time with 66,250 deliveries ahead of Mitsubishi 61,907 and Nissan dropping to sixth 56,032.

Hyundai was the first Korean manufacturer, in seventh position with 48,010 sales, narrowly ahead of Honda (47,001).

Subaru had a record year with 36,044 sales to finish ninth ahead of Kia, 10th on 25,293.