VFACTS March: Another record month for new car sales

The records keep tumbling in Australia’s booming new-car market but the script is constantly changing as 109,647 vehicles were sold last month – up 12.7 per cent year-on-year and more than 2650 units ahead of the previous March record set in 2018.

VFACTS figures for March released today also confirm an all-time-record first-quarter result for the auto sector, totalling 304,452 sales to push the market ahead by 13.2 per cent compared to Q1 2023.

What’s more, March represents the ninth record monthly result over the past 12 months, with 1.252 million new cars delivered to Aussie buyers over that period.

But…

Despite the Ford Ranger holding its position as the nation’s most popular new vehicle with 5661 sales (+25.6%), and Toyota dominating as overall market leader with an emphatic 18,961 runs on the board (+43.4%), last month’s industry result across all brands was anything but formulaic.

With 8776 sales (+35,3%), Ford overtook Mazda (8246, 0% change) to take second place outright – the Japanese brand unable to capitalise on the boom this year – while Mitsubishi was strong in fourth position (7866, +34,2%), picking up momentum with its new Triton ute (1954, +24.6%) launched during March.

Notwithstanding double-digit growth, the two leading Korean car-makers, Kia (7070, +10.4%) and Hyundai (5985, +11.5%), occupied only fifth and seventh position respectively in March – US electric car brand Tesla split them in sixth position overall with 6017 sales (+68.2%) – while the top 10 was rounded out by a resurgent Nissan (4976, +46.2%) and, with rare negative returns, Isuzu Ute (4351, -4.0%) and MG (3949, -1.4%).

MG has already responded with significant discounts across its line-up.

Among the leading models behind Ranger, the Toyota HiLux (3995, -12.8%) tumbled to fourth overall in the popularity stakes as sought-after hybrid and EV models in the top-selling mid-size SUV segment were delivered in large numbers – namely, the Toyota RAV4 (5070, +185.2%) and the Tesla Model Y (4379, +126%).

There were four other medium SUVs among the top 10 – the Mitsubishi Outlander in fifth (2764, +12.8%), Nissan X-TRAIL eighth (2161, +10%), Mazda CX-5 ninth (2134, +9.9%) and Kia Sportage 10th (2114, +9.8%) – which underscores the segment’s significance with 28,840 sales (+30.6%) last month across almost 50 models in both mainstream and premium categories.

The other two models in the top 10 were a diesel-powered ute – the Isuzu D-MAX (2465, -11.6%) – and a diesel-powered ute-based large SUV – the Ford Everest (2264, +129.8%) – which also goes to the heart of the current debate over buyer preferences and heavy penalties looming for vehicles in these segments with the federal government’s New Vehicle Efficiency Standard (NVES) due to take effect from January 1, 2025.

In handing down the results, Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber said: “This is a terrific result for the sector, however all car brands are well aware that these results cannot be taken for granted.

“We need to factor in the ongoing cost of living pressures and the challenges for industry and consumers that will emerge with the introduction of NVES in less than nine months.

“A fuel efficiency standard is long overdue. However, we remain concerned at the speed and magnitude of the change for both manufacturers and more importantly, consumers.

“The car-makers will respond. However, it will take time to develop new products, especially in the large SUV and light commercial segments, that meet expectations in terms of price, performance and emissions, noting these vehicles make up more than one third of new-vehicle sales in Australia.”

There were 23,061 light commercial vehicles sold in March (+4.8%) – 17,629 of them 4x4 utes (+7.0%) – which accounted for 21 per cent of the market.

SUVs remained the dominant force, racking up 64,631 sales (+20.7%) across all segments last month for a 58.9 per cent share. That left passenger cars on 17,611 units (+2.5%) and heavy commercials on 4344 (-4.1%), taking a share of 16.1 and 4.0 per cent respectively.

Battery-electric vehicles (10,464 units, +58.3%) made up 9.5 per cent of all new-vehicle sales in March, up from 6.8 per cent a year ago, while hybrid cars (13,935, +165.6%) and plug-in hybrids (1412, +148.2%) took a 14 per cent slice – more than double the share from March 2023 (6.0%) and taking electrified vehicles to 23.5 per cent of the total market last month.

Notably, Polestar figures are no longer being reported through VFACTS after the EV brand left the FCAI during March in the wake of bitter industry infighting over the proposed NVES. For the record, Polestar sold 84 cars last month.

Tesla has also left the peak industry body, but its figures will continue to be reported via VFACTS until the end of June.

Diesel? We bought 31,731 oil-burning new vehicles last month (+5.5%), while petrol power is still the propulsion system of choice with 47,761 sales, albeit one that’s declining as electrified vehicles slowly take their place (-4.9%).

Top 10 brands (2024 year to date):

Top 10 models (March 2024):

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