Sales survive interest rates, petrol price hike

Australia's car industry will have its second-best year on record after surviving the twin evils of rising interest rates and high petrol prices in 2006.

The Federal Chamber of Automotive Industries (FCAI) said sales for the full year were expected to reach 970,000 vehicles, just marginally below the record 988,269 retailed in 2005.

Releasing official figures for November, the FCAI said 83,297 cars and trucks were sold last month, down 0.3 per cent on the 83,538 sold in November last year.

The result took demand on a year-to-date basis to 885,603 vehicles, down 2.6 per cent or 23,389 vehicles on the corresponding period in 2005.

FCAI chief executive Peter Sturrock said the industry was looking for a strong result from the traditional end-of-year retail push to take it to the forecast total of 970,000 vehicles.

"In a year when fuel prices have reached record levels and we've had a succession of interest rate rises, it's remarkable that the Australian motor vehicle industry is still likely to finish with its second-best ever sales result," Mr Sturrock said.

It was the high price of fuel and finance which helped the light car segment become the main driver of the market this year, with demand in the sector rising 18.8 per cent last month.

"The light car boom is undoubtedly one of the major motor vehicle sales stories of 2006," Mr Sturrock said.

"Throughout the year, the motor industry's smallest models have been the biggest growth trend, propelled by spiking fuel prices, rising interest rates and the exceptional value and convenience these cars now represent."

Toyota was the top selling company in November with 20,247 vehicles ahead of 12,866 for Holden and 9201 for Ford.

That stretched Toyota's overall lead to more than 60,000 units, assuring the company of market leadership in 2006.

With one month to go, Toyota had sold 196,200 vehicles ahead of Holden on 135,010 and Ford on 107,096.

Toyota senior executive director of sales and marketing, David Buttner, said the company was the only one among the four top-selling brands in Australia to lift its sales this year.

"Toyota has been able to achieve market growth in tough conditions as a result of many factors, including our great dealer body and product strength across many segments in both the passenger and commercial vehicle markets," he said.

Holden had the top-selling car in November, selling 5238 Commodores.

The next best was the Toyota Corolla with 3899 units followed by the Ford Falcon on 3447.

Other top-selling models were the Mazda 3 (2922), Toyota Yaris (2812), Toyota Camry (2603), Toyota HiLux 4x4 (1865), Toyota HiLux 4x2 (1636), Holden Astra (1606) and the Toyota Aurion (1543).

Source: AAP 2006