Auto Insights: New car market tops half a million in June 2015

What’s driving auto sales growth?

2015-08-24

In the month of June 2015, new vehicle sales reached 125,850, representing a 6.4% increase on the month of June 2014. This means that over the year to date, Australia’s new car market has topped half a million, delivering an increase of 3.3% over the same period in 2014. 

The significant growth is primarily attributed to:

  • the increased affordability of new cars, as demonstrated by CommSec’s Car Affordability Index which is at its highest level in over 40 years 
  • record low interest rate finance. 

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Automotive sales update

Domestic passenger motor vehicle producers Ford, Holden and Toyota are winding down production based on their independent decisions to end domestic car manufacturing by 2017.  None the less local manufacturers Toyota and Holden have maintained their relatively strong top five market share position.  

Top performers by manufacturer

The Toyota Corolla was the top selling car for the year to date as demonstrated in the below chart, with 21,750 sales to 30 June 2015. Contributing to this result were a number of standard feature upgrades across the range in recent months which now include; a reversing camera and improved interior design. The other top selling cars were Mazda3, Toyota Hilux, Hyundai i30 and Holden Commodore.  

The Mazda3 and the Hyundai i30 continue to be popular choices due to drive away deals, fuel-efficiency and new technology. Toyota remains the market leader for the June 2015 YTD, followed by Mazda and then Holden.

 

Top selling cars June 2015     Top manufacturers Market share
  YTD (Units)      
Toyota Corolla 21,750        Toyota 17.6%
Mazda3 20,427   Mazda 9.8%
Toyota Hilux 18,781   Holden 8.9%
Hyundai i30 15,801          Hyundai 8.7%
Holden Commodore 13,769   Mitsubishi 6.2%

 

Segment

Australia's new car sales delivered an increase of 3.3% over the same period in 2014. 

       
Segment Sales units            % change YTD
Passenger vehicles 260,752   -3.1% (8,233 units)
Sports Utility Vehicles  199,671          13.8% (24,172 units)
Light commercial  102,684    1.9% (1,958 units)
Heavy commercial  15,320    3.9% (580 units)

 

The SUV segment continues to see the highest growth up 13.8%, compared to the same period in 2014, indicating that here has been a continued move away from standard passenger vehicles towards SUVs. Although the SUV segment saw the highest growth, small passenger cars (mainly small hatches) and light commercial vehicles remain in the top five. 

State

Looking across the Australian states and territories, the changes for the year to 30 June 2015 were as follows:

       
State Sales units                  % change YTD 
Australian Capital Territory 8,981   2.8% (245 units)
New South Wales 188,902   6.0% (10,617 units)
Northern Territory 5,884   1.3% (76 units)
Queensland 121,198   5.4% (6,162 units)
South Australia 34,685   -1.0% (363 units)
Tasmania 9,042   8.5% (708 units)
Victoria 155,495   4.0% (6,007 units)
Western Australia 54,240    -8.4% (4,975 units)

 

The mining states including Western Australia and South Australia continued to decline over the period, which can be linked to job losses and falling commodity prices in the sector, which is impacting consumer confidence generally.

The variance between Western Australian and the rest of the country demonstrates the economic shift from the mining states to the service states, such as New South Wales, Victoria and Australian Capital Territory, which have seen considerable growth over the period.   

For further details, please contact Brett Fowler, Partner of ShineWing Australia.