Toyota dominates but all local builders struggle

The announcement yesterday of 2006 as the second largest ever new vehicle sales year was not all good news. Behind the overall numbers and Toyota's growth in market share and sheer volume, there has been a substantial fall in local product uptake.

While the overall new vehicle sales of 962,521 was just 2.6 per cent off 2005's record setting mark of 988,269, locally-built vehicles accounted for just over 200,000 units. This compares to almost 250,000 units in 2005. In percentage terms, the 47,289 vehicle deficit (201,623 versus 248,912) was 19 per cent.

Bearing the brunt in lost local sales was Holden. It sold 77,136 locally-built vehicles, 19,420 less than it did in 2005. Ford pipped Holden, moving 77,770 units thanks to its two-pronged Falcon/Territory range, but it too was over 19,000 units in the red (19,128). In percentage terms Holden reduced its local built sales by 20.1 per cent and Ford 19.7.

Overall market leader Toyota sold 33,652 Australian-built vehicles into the Aussie market in 2006, 5789 units less than 2005. This translates to a drop of 14.7 per cent. Toyota is insulated somewhat as it is the only local manufacturer of four-cylinder vehicles.

Mitsubishi was less than 3000 units off 2005's total but in percentage terms that equates to a drop of 18.4 per cent -- 13,065 units versus 16,017. Its sole locally-produced vehicle, the 380 is still only offered in six-cylinder form.

The above figures do not represent total Australian production -- in 2006 Australia exported over 132,000 vehicles with Toyota accounting for 79,600 and Holden all but a handful of the balance.

The Federal Chamber of Automotive Industries (FCAI) estimates that total exports will be closer to 150,000 units in 2007. That said with local builders focussing on large cars (and medium SUV in the case of Ford) it's easy to see why Holden, Ford and Mitsubishi have all had to either substantially downsized their respective production workforces or reduced shifts and/or hours at their plants.

Holden and Toyota are talking up the prospects of growing export markets for their latest offerings. Indeed, there is speculation that next week's North American International Auto Show in Detriot will see GM announce new Holden VE-based model(s) for the US market. Save for a small number of cars to RHD markets, Ford meantime will have to wait for next year's LHD-capable next generation Falcon and Territory to really start the offshore ball rolling.

FCAI boss Peter Sturrock reckons Aussies "have not fallen out of love with large cars" but for the sake of the local manufacturing sector (worth around $5.6b including exports, says the federal body) the 'affair' definitely needs to return to hot and steamy in 2007.

Perhaps there is also some local some light at the end of the tunnel. Like November, December 06 saw the large car segment bounce a little as Aurion attracted new buyers and the VE Commodore started to get some much needed traction.

Compared to the segment's 18.4 per cent drop year or year for the full run of 2006, December large car sales were less than 10 per cent down on December 2005.