Toyota LandCruiser to spearhead 2021 sales growth

Australian car sales fell to their lowest mark in almost two decades last year, but 2021 is shaping up to be a much stronger year for the auto industry as Aussies find different ways to spend budgets usually reserved for overseas holidays.

And new cars are tipped to be at the top of the shopping list.

In the wake of the coronavirus global pandemic, Australians are now forced to holiday at home which is already seeing adventure machines such as the Toyota LandCruiser and Prado large SUVs finding favour with buyers.

As the scope – and appeal – of the humble road trip expands and becomes a de facto replacement for overseas travel, Toyota Australia president and CEO Matthew Callachor points out that car-makers are well positioned to benefit from a redirection of holiday spending.

“One of the factors that appears to be contributing to the recent upswing in new car sales is that our international borders are closed,” he said during the brand’s annual sales media briefing today.

The Toyota LandCruiser 200 Series and Prado finished the year as sales leaders in the large and upper-large SUV segments in 2020, recording massive month-on-month growth in November and December of up to 128 per cent.

Despite annual new car sales in Australia dipping by 13.7 per cent in 2020 compared to the year prior (916,968 vehicles versus 1,062,867 vehicles), the last two months of the year saw national sales increases of 12.4 and 13.5 per cent respectively.

Callachor pointed out that figures from government agency AusTrade showed that Australians “spent $26 billion more travelling overseas in 2019 than overseas visitors spent in Australia” and that some of this expenditure is now finding its way into the car industry.

“Forced to scrap international holidays, many Australians who would normally be travelling to Europe, Bali or elsewhere are instead relying [sic] to explore their own backyards. And many of them are buying new vehicles to ensure the family road trips are as comfortable and safe as possible,” he said.

With around 50 per cent of all new vehicle sales in Australia accounted for by SUVs in 2020, and utes making up more than 20 per cent, buyers are clearly seeking vehicles with more off-road and towing capabilities.

“Australians are well known for their love of going overseas, and so in the absence of being able to do that, many Australians are saying, ‘Well what am I going to do for a holiday?’” Callachor said.

“We do have a situation where international travel is heavily constrained or almost impossible at the moment.

“And then when you couple that with the figure that we saw that AusTrade is saying that is spent outside Australia … that money will ultimately go somewhere.”

The Toyota boss observed there was “a general feel of optimism” for new car sales but cautioned that 2021 wouldn’t be a cakewalk for car-makers, car dealers and associated businesses.

“We’re not getting ahead of ourselves. There’s still a lot of pitfalls potentially … but in general we’d have to say the trend is positive,” he said.

Toyota is set to launch several new SUVs in 2021, including next-generation versions of the LandCruiser and Kluger - both offering hybrid powertrains for the first time in Australia.

Brand T will also introduce its all-new Corolla Cross small SUV, a jacked-up wagon version of its global best-seller.

The highly-anticipated Toyota LandCruiser 300 Series will also be an important vehicle launch for the brand, the flagship upper-large SUV tipped to become the most expensive Toyota ever sold in Australia with prices expected to nudge $150,000.

In 2020, Toyota was the top-selling brand in Australia, with the Toyota RAV4 the top-selling SUV.

And according to Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber, demand for AWD vehicles and SUVs won’t wane.

“I think it will continue to grow. I think that people will want to holiday domestically. The benefits of an SUV are enormous and people recognise that. So I think it’s a part of the market that will continue to grow and be very strong into the future in Australia,” he said.