Bruce Newton•21 Feb 2014
NEWS
Toyota backs Aurion... for now
But large car sales slide could eventually prompt a rethinkToyota Australia has defended plans to import the Aurion V6 post-2017 along with the Camry four-cylinder and petrol-electric hybrid, despite the steadily decreasing sales numbers in the large car segment.
But it has also made it clear that decision could change if the segment’s sales slide continues.
The company has also bullishly declared it will continue to sell more than 200,000 cars in Australia each year even after it ceases local manufacturing of the Camry and Aurion no later than the end of 2017.
Ford, which finishes up as a manufacturer in Australia no later than October 2016, will not directly replace the Falcon ‘big six’. Instead the Mondeo, a Camry rival in the medium segment, will be its largest passenger car.
Holden, which is scheduled to shut down its Elizabeth plant no later than the end of 2017, will continue the Commodore badge on an imported front-wheel drive model sourced from another GM division. It is expected to include a V6 engine option.
The current VF Commodore is the dominant player in the declining large car market with a 59 per cent share in 2013. The FG Falcon, which is sinking rapidly, claimed a 22.5 per cent share. The Aurion was number three with 14.5 per cent.
In 2007, its first full year on-sale in Australia, Toyota sold 22,036 Aurions. In 2013, 6839 were sold. In January 2014, its sales were off nearly 23 per cent year-on-year.
The overall large car segment has declined from 12.7 per cent of the market in 2007 to 4.1 per cent in 2013.
“At this point in time we still see a market [for Aurion],” Toyota Australia executive director sales and marketing Tony Cramb told motoring.com.au.
“Month by month we are selling between 500 and 1000 vehicles and that’s a significant number of vehicles. While ever that market is there we would look to place a vehicle into it.
“So if that market in 2020 is no longer existing then maybe we make a different decision. But as we have said it is definitely our intention to replace the Aurion.”
Asked if the Aurion decision could change between now and 2017, Cramb deflected: “We don’t talk in detail about our product plans into the future and the mechanism between now and then will be the same as normal.”
While Aurion is a struggle, there is no questioning the success of the Camry, which claimed more than 40 per cent of sales in its segment in 2013. However, a big share of those sales is to fleets and predicated on local manufacturer status, something Cramb acknowledged.
“I think 2013 was our 20th year in a row as segment leader, so we don’t want to back away from that sort of success and we are going to continue to merchandise aggressively in order to maintain the sort of volumes that we are used to.”
That applies not only to Camry but the entire range and Toyota’s determination to sell more than 200,000 vehicles annually in Australia through a dealer network that is not expected to change in size post-2017.
Achieving those sorts of numbers virtually guarantees Toyota will continue to sit atop the Australian sales charts. It has been number one for the last 11 years and sold more than 200,000 vehicles nine years in the last decade. Breaking through the 100,000 sales barrier is the challenge for most of its rivals.
“With the support of our loyal customers and those new to the brand we expect to keep selling more than 200,000 vehicles for many years to come,” Cramb said.
“We are pretty focussed on providing the customer a car in each segment that meets their needs at good value and one by one trying to meet the segment requirements as they emerge,” Cramb added.
“Some segments are growing quicker than others, there are some segments where we are not represented so we will continue to focus our activities with providing the customers what they need here in Australia.”
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Aurion
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Written byBruce Newton
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