VFACTS April: Monthly sales halved

The Federal Chamber of Automotive Industries (FCAI) has today released VFACTS sales figures for the month of April, revealing that the coronavirus pandemic has had the expected effect: a significant reduction in the market for new cars and commercial vehicles.

A total of 38,926 sales were recorded for the month, representing a fall of 48.5 per cent over the same period last year (75,550 sales) and the largest single decrease of any month since VFACTS figures were first recorded in 1991.

“Clearly, the COVID-19 pandemic has had a major influence on the April sales result, and reflects a downturn in the broader economy right across the country,” said FCAI chief executive, Tony Weber.

But the market was in a sorry state even before the national lockdown. The year-to-date figures published by VFACTS indicate the market (272,287 sales) for the first four months has declined 20.9 per cent, compared with the 344,088 vehicles sold during the first four months of 2019.

April 2020 was the 25th consecutive month of year-on-year market slide, according to VFACTS, which makes last month's figures seem even worse, given they're contrasted with April 2019, itself a less than stellar month for sales.

“Figures recently released by the Australian Bureau of Statistics show that 31 per cent of Australian citizens have experienced a decrease in income due to the pandemic,” Weber also observed.

“In addition 72 per cent of Australian businesses reported that reduced cash flow is expected to have an adverse impact on business over the next two months. These conditions inevitably impact consumer confidence and purchase decisions.”

Weber drew on the sales stats to lobby government to provide additional assistance for the automotive industry.

“Our member brands are working closely with their dealer networks to ensure dealerships are accessible and safe,” he said.

“Enhanced hygiene protocols and contact-less sales and social interactions have been initiated to ensure personal protection for both customers and dealer staff.

“We know that our member brands are doing everything they can to assist both their dealerships and their valued customers during this difficult time.

“But more needs to be done.

“We are calling on federal and state governments to consider the automotive industry, which employs over 65,000 people in Australia, when compiling their recovery plans.

“The JobKeeper and JobSeeker payment programs put in place by the Federal Government are a welcome initiative.

“However, we believe the scope needs to ensure high turnover and low margin businesses, such as new car dealerships, are covered. These businesses are often the backbone of local communities and in the current environment, many are facing overwhelming challenges," Weber stated.

Weber finished on a slightly positive note, offering his opinion that consumer confidence is beginning to improve slightly as the lockdown restrictions ease, and he also insinuated that the instant asset tax write-off could be a major factor in the industry’s recovery if only the government would extend it further.

carsales' own figures indicated April was month of two halves, with strong consumer interest returning to the auto marketplace post-Easter. In fact, traffic to carsales and carsales editorial in the second half of April was strong -- the latter at record levels.

In percentages, the passenger car class was affected worst, losing 61.6 per cent of sales for a final figure of 9157 vehicles sold – 14,659 fewer than April 2019, when the industry sold 23,816.

But while the SUV share of the market dipped by a smaller percentage – 45.7 per cent – the actual sales numbers were worse than passenger cars, coming from a higher total in April last year. SUV consumers purchased 33,190 vehicles 12 months ago, but just 18,023 last month. That’s a fall of 15,167 sales.

Things were slightly better in the light commercial vehicles class, with 9436 units sold last month, versus 15,601 in April 2019. That represents a shortfall of 6165 sales, or 39.5 per cent.

The only market segment to fare better last month than 12 months earlier was the light-bus segment.

Of all the many brands operating in the Australian market, only MG, RAM and two heavy commercial brands – Volvo and Western Star – sold more vehicles last month than in April 2019. In MG’s case, just six cars (1.5 per cent growth from 408 to 414) separated its figure from last April’s score.

Holden sold 1501 vehicles in April, which was 1982 fewer than April 2019, but still a better performance for the month than Nissan, Honda and Volkswagen – helped no doubt by the GM brand's runout of stock ahead of its closure later this year.

Kia’s dramatic climb has come to an abrupt halt, with sales 1360 units behind the hard-charging brand’s performance in April of last year.

Despite that, it is one of just two brands in the top 10 to sell more cars during the first four months of 2020; the other brand is Toyota, which continues to lead the market.

In order, the top 10 brands for the year to date are:

Toyota – 60,396
Mazda – 23,766
Hyundai – 18,941
Mitsubishi – 18,357
Kia – 17,971
Ford – 16,133
Nissan – 12,217
Honda – 11,154
Volkswagen – 11,077
Holden – 10,501

Of the top 10 vehicle sales for the month, by model, only the Toyota RAV4 (pictured) found more buyers year on year. At 1911 vehicles sold during April, the RAV4 was 54 per cent clear of last April’s number, 1238 sales. And only the Ford Ranger held back Toyota from dominating the first five places, although it's uncertain how much longer Ford Australia can keep that up.

The top 10 models for the month are:
Toyota HiLux – 2339
Toyota RAV4 – 1911
Toyota LandCruiser – 1603
Ford Ranger – 1540
Toyota Corolla – 1195
Toyota Prado – 947
Kia Cerato – 860
Holden Colorado – 854
Isuzu D-MAX – 760
Hyundai i30 – 695