VFACTS for March: Easter holiday setback for sales

No deep, dark, conspiracy behind sales slow-down; just buyers taking a break

Media reports circulating prior to the official release of VFACTS sales figures for March are now looking like little more than a beat-up.

A news story gained currency around the nation with a clear warning that the halcyon days of persistent market growth were no more, but the reality is somewhat less dire. Official figures released by the Federal Chamber of Automotive Industries (FCAI) today reveal that the year-on-year decrease in sales over March 2012 was just 216 vehicles – about 0.2 per cent rather than the 1.5 per cent figure cited in the original article.

There are numerous possible reasons for the minor sales blip last month, but not least among them would be the Easter holiday period. As the FCAI noted in its press release today, there were three selling days fewer in March 2013 than in March 2012. So the daily sales rate for the market last month actually rose by 457 vehicles per day – an increase of 11.1 per cent over March last year.

The total market for the month was 97,400 vehicles – 216 less than 97,616 sold in March of 2012. That difference sprang from the reduced passenger vehicle sales, which fell by 2432 units for the month, offset by 1720 more SUVs sold and 417 additional light commercial vehicles. The balance was made up by 79 extra heavy commercials for the month.

According to VFACTS, the passenger vehicle market is in a longer-term decline than just one month. For the year to date, passenger cars have sold 133,959, which is a 4.0 per cent slump equating to 5620 lost sales. Within that class, medium, large and people mover segments contributed to the lower sales, but all other segments improved on last year's first quarter performance.

Reduced passenger car sales for the month and the year so far have been more than offset by increased sales of SUVs and light commercial vehicles, reflecting the boom in three out of the four SUV segments and an ever-increasing trend towards pick-ups as weekend recreational vehicles and dual-cabs as de facto family cars. For the year to date, only the upper large segment in the SUV class (LandCruiser and Patrol) has lost ground from last year. In the LCV class, only 4x2 and 4x4 pick-ups and cab-chassis models have pushed sales ahead. Sales of vans and light buses are uniformly down for the first quarter of 2013.

Far from the doom and gloom being reported, Toyota's total sales of 18,563 for the month was the strongest March result in three years and contributed to the company's best first quarter sales tally over the same period. Matthew Callachor, Toyota Australia's executive director sales and marketing, announced in a press release issued today that the company was "aiming to sell more than 200,000 Toyota vehicles in 2013, helping to drive the entire industry to a fourth consecutive year in excess of one million sales." Buyer demand remains strong, according to the Toyota boss, due to low interest rates and favourable economic conditions.

Sales of 4219 vehicles in March pushed Subaru across the line for a new monthly sales record. Market share for the brand was 4.3 per cent, helped by strong sales of XV (pictured), Impreza and Forester.

“We’re delighted to establish a new record in a month when overall industry sales actually declined 0.2 per cent,” Nick Senior, Subaru Australia MD said in a statement. “The customer response to our new generation Subarus is tremendous and with the launch of our first automatic diesel, the Outback 2.0D CVT, we can see more potential as the year progresses.”

Nissan enjoyed a great month for sales in March. The importer sold 8327 vehicles for the month – its best ever result in March and the company's second-best monthly total. Last month marked the 11th consecutive occasion Nissan had posted a sales record, the company claims. Over the past 12 months – coinciding with Nissan's 2012/13 financial year – the company sold nearly 84,000 vehicles, which amounts to a 20 per cent improvement from the previous financial year. That rate of growth is roughly double the growth of the whole Australian market.

“Several key factors are behind Nissan’s strong and sustained sales growth in Australia,” said Nissan Australia MD, Bill Peffer. “My team and I have maintained an intense focus on the fundamentals of our business. We have capitalised on the new and refreshed Nissan models that have started to arrive locally and we have made it easier for Australian buyers to own a Nissan with a variety of simple and appealing finance offers.”

A report that Hyundai had outsold Holden for the month is correct; all Holden models other than Captiva and Colorado posted lower sales in March. The March result for Holden was 8283, versus 8402 for Hyundai, with just 119 sales separating the two. Commodore sales alone slid backwards from 3187 in March 2012 to 1606 last month. That's a difference of 1581 units, in the context of VF Commodore just months away from a retail launch. Holden remains ahead of Hyundai in year to date numbers.

Ford was another company that sold fewer cars for the month, year on year – 6434 last month versus 7457 a year earlier. But unlike Holden, Ford remains ahead of its year-to-date figure for 2012, by 500 units.

Mazda sold 9112 cars for the month, 200 down on March 2012, but that didn't hinder the company from issuing a press release announcing it remained the best-selling full-line importer in the country and Mazda3 continued to be Australia's favourite car.

“Our results over the last 12 months have been very satisfying and would not have been possible without such a great range of vehicles or the dedication and hard work of our dealer network. Our gratitude, of course, also extends to Australian car buyers that have placed their trust in the Mazda brand,” Mazda MD Doug Dickson was quoted saying in the press release.

Mr Dickson, who has been associated with the Mazda brand in Australia for 35 years – nine in the capacity of managing director – announced he was stepping down today. Succeeding him will be Mazda stalwart, Martin Benders. Mr Benders started in Mazda's Queensland office in 1987, and has since taken on roles as Victorian state manager, national marketing manager and head of Global Product Marketing based at Mazda's Hiroshima HQ. Prior to his nomination as the new Mazda Australia MD, Benders was Vice President of Sales for Mazda Motor Europe.

Top selling brands for the year to date are: Toyota (48,045), Mazda (26,752), Holden (24,777), Nissan (23,868), Hyundai (22,723), Ford (20,746), Mitsubishi (15,605), Volkswagen (12,323), Honda (11,575), Subaru (10,429). Of the companies in the top ten, Holden, Mitsubishi and Subaru have recorded lower sales for the year to date, in contrast with Q1 of 2012. The other seven companies have all improved over the same period last year.

The 10 best selling cars during the month of March were: Mazda3 (3786), Toyota Corolla (3512), Toyota Hilux (3127), Hyundai i30 (2595), Nissan Navara (2499), Holden Cruze (2335), Mitsubishi Triton (1992), Toyota Camry (1916), Mazda CX-5 (1830), Ford Ranger (1685 ). Mazda3 remains the top-selling car for the year to date, with 10,509 units sold.

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VFACTS for March: Easter holiday setback for sales

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