New vehicle sales report – June 2009

Despite much economic doom and gloom, June 2009 was the third highest selling month for new car sales in Australia’s history. A total of 102,847 vehicles were sold.

Around 45% of those sales were to business customers, proving beyond any doubt that the Government’s tax incentives fulfilled their role.

FCAI Chief Executive Andrew McKellar stated, “The surge in business sales is directly attributed to the Federal Government’s business tax break and these figures provide clear evidence that this has been a very effective policy measure.

“Our analysis indicates that the business tax break has led to an additional 10,000 vehicles being sold over the past three months. That is a 10 to 12 per cent boost to business sales and a five per cent increase for the total market.”

Despite a boom June overall sales figures for 2009, unsurprisingly, are below those recorded at the same time last year. Almost 90,000 fewer vehicles have been sold on a year to date basis, representing a figure of -16.1%.

However, there are some shining lights with Audi having its best month on record and one of the few manufacturers to be increasing sales in 2009. Overall sales are up 10% on 2008 figures.

Mazda also signed off on a record sales month, with the new Mazda3 proving a hit selling more cars in one month than ever before as buyers look to downsize.

Likewise MINI enjoyed a great month locking in its best results yet for orders taken in a single month since its relaunch in 2001.

Finally, Subaru had its best ever month for Impreza sales. This is a genuine surprise as the view at AUSmotive HQ is that the Impreza is a bit unsightly these days.

Lots of chest beating below from industry bodies and bragging manufacturers.

Business Sales Boost Car Market in June

The latest new vehicle sales data shows encouraging results with clear signs the market has been boosted by strong, additional demand from business sales.
Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 102,847 passenger cars, SUVs and commercial vehicles were sold in June 2009.

This is the third highest selling month on-record, following 106,541 in June 2008 and 105,097 in June 2007.

“The June results are encouraging and a positive sign for the new vehicle market and the Australian economy,” FCAI Chief Executive Andrew McKellar said.

“This is the third highest selling month on-record and only the fourth time ever that sales have exceeded 100,000 units in a single month,” he said.

Business purchases in June were 46,679 – a 12 per cent increase on a year ago. In particular, sales of utes, vans and light trucks have surged by 26.9 per cent compared to June 2008.

“The surge in business sales is directly attributed to the Federal Government’s business tax break and these figures provide clear evidence that this has been a very effective policy measure,” Mr McKellar said.

“Our analysis indicates that the business tax break has led to an additional 10,000 vehicles being sold over the past three months. That is a 10 to 12 per cent boost to business sales and a five per cent increase for the total market,” he said.

“This is additional turnover of between three-and-four-hundred million dollars that is providing a direct boost to the car industry as well as other local businesses throughout the Australian economy,” Mr McKellar said.

“The tax break is classic stimulus; it is giving businesses the confidence to invest in their own future and securing jobs in the industry,” Mr McKellar said.

Year-to-date 455,223 new vehicles have been sold, down 16.1 per cent (87,472) compared to the same period last year.

Toyota continued in the top sales position in June with 21,410 vehicle sales, ahead of Holden with 12,167 and Ford with 10,194.

Strongest Sales Month on Record for Audi

• Premium Audi brand continues to smash new records
• Growth of 23.4 percent contributes to record half year results
• Celebrating 100 year anniversary this month

Audi has smashed all previous sales records in June 2009, selling 1,119 vehicles – an all-time record for the brand in its Australian history.

The result represents growth of 23.4 percent month-on-month.

Audi’s previous best-selling month was January 2009 with 1,081 retail sales.

Year-to-date, Audi is now an incredible 10 percent up on the same six month period to end-June 2008 with total sales of 5,611 vehicles, in a total market that is down by 16.1 percent.

This makes Audi the fastest-growing premium carmaker in Australia.

Audi’s managing director, Joerg Hofmann, has congratulated his team and the entire Audi retail network for the result, citing a strong product offering, clear strategic direction and an emphasis on achieving record results month after month as the key success factors.

“We are operating in a challenging environment at present, however the Audi team is incredibly focused on achieving results and showing profitable growth in a negative market,” Mr Hofmann said.

“We have worked hard, invested strategically for the long term, and we are 100 percent committed to the success of Audi in Australia. For this reason, we do not believe our brand has to take a step backwards simply because the market is down. We focus only on the future of the brand in Australia,” Mr Hofmann said.

“We’re proud of our record first half-yearly result and have no intention of slowing down in the next few months.

“In July, we celebrate our Centenary, and in August we open the world’s largest new Audi dealership at Victoria Park in Sydney. We are a successful brand for successful people and our record results are proof of this,” he added.

The A4, A5, Q5 and Q7 all strongly represented the Audi brand in June 2009.

In July, Audi will launch its new fuel-sipping TT 2.0 TDI (5.3 litres) and 1.8 TFSI (6.7 litres) models, along with the new A6 2.0 TDI (5.8 litres) and 2.7 TDI (6.4 litres). Each of these impressive new variants beat the Luxury Car Tax impost thanks to their low consumption of less than 7 litres per 100km.

All-time High for Mazda

• Best ever sales month for Mazda
• YTD share is 8.5% (+0.65)
• Revised 2009 sales target of 70,000
• Best ever sales month for Mazda3 (3,741) and BT-50 (1,327)

Mazda has shrugged off the challenging economic times, achieving its best-ever sales month in June.

According to official VFACTS figures released today, Mazda retailed 8,406 vehicles last month – eclipsing its previous best of 7,565 set in March 2008.

Year-to-date the top-selling full-line importer has an 8.5 per cent share of the Australian new car market. That’s an increase of 0.65 percentage points year-on-year.

Mazda’s market share for the month was 8.2 per cent, up 1.1 percentage points on June 2008.

So far this year Mazda has sold 38,603 new vehicles and the company is well on track to achieving its 2009 sales target of 70,000 – revised up from 68,000.

Just two months on from the launch of the New Generation Mazda3, the perennially popular small car has achieved its best ever sales month, with 3,741 sales. Mazda3’s previous best of 3,347 sales was achieved in January 2007.

June Mazda3 sales secured Mazda a 17.8 per cent share in the <$40K small car segment. Testimony to the escalating popularity of New Generation Mazda3, an incredible 23 per cent more Mazda3s were sold in June than the month before.

Meanwhile 948 Mazda6s were sold last month, that’s 17.5 per cent up on June 2008.

The company’s light commercial utility, BT-50, also achieved its best ever month with 1,327 sales of its 4×2 and 4×4 turbodiesel models. Sales of BT-50 are up 24.8 per cent on June 2008.

Mazda managing director Doug Dickson attributes the stunning June result to the company’s extraordinary Dealer network.

“We never could have achieved this result without the continued support from our Dealer network and their belief in Mazda and the Mazda product.

“Any good business needs good product that appeals a diverse range of buyers, and Mazda has something for everyone.

“With New Generation Mazda3’s winning combination of style, safety, comfort and handling, we’re extra confident we’ll be able to achieve our new 2009 sales target of 70,000.”

MINI Records Strongest Customer Orders Since Rebirth

MINI recorded its strongest month of customer orders since the rebirth of the brand in 2002. A total of 284 new car orders were taken in June.

A total of 191 customers took delivery of a new MINI in June, the strongest month recorded since May 2008.

The arrival of the new MINI Cooper D, the first ever diesel MINI sold in Australia, helped drive record levels of customer interest.

“Clearly the world is becoming more MINI,” says Justin Hocevar, national manager of MINI.

“After a sensational order intake in May, June shot to a groundbreaking level. It was the highest order intake since the rebirth of the brand.

“Not only is MINI Cooper D driving strong growth, nearly double our expectations, but we’re also experiencing unprecedented demand across the range including a huge rise in John Cooper Works.

“Particularly pleasing are the latest JD Power results which confirm the high loyalty rate of MINI buyers.

“The initial quality survey data reveals that 87 per cent of MINI owners in the US would definitely recommend a MINI – which is second only to Porsche on 88 per cent,” he says.

Impreza’s New Record

The Symmetrical All-Wheel Drive Subaru Impreza achieved an all-time sales record of 1568 in June, according to official VFACTS figures released today.

Subaru retailed 3757 vehicles in June.

The Impreza figure was up 52.1 per cent on June 2008 and places the model 9.5 per cent up year-to-date (YTD).

Forester sales of 1506 maintained its status as Australia’s best-selling Sports Utility Vehicle across all categories YTD, with sales up 9.3 per cent.

Subaru’s market share for the year is 4.2 per cent, and 3.7 per cent for the month.

The Subaru result was rounded out by sales of 362 Libertys and 241 Outbacks, both of which are in short-supply as the model’s run-out continues pending the launch of new generation cars by early September. Tribeca sold 80, with demand for premium variants outstripping supply in the short term.

Small Business Continues to Drive New Vehicles Sales

VACC, the peak Automotive Industry body in Victoria, says today’s new vehicle sales figures are good news for the Australian Automotive Industry.

According to VFACTS, the June 2009 industry volume is up 27,406 or 36.3 percent on last month (75,441 vehicles). In seasonally adjusted terms, the June monthly volume equates to a 11.8 percent increase compared to May.

102,847 passenger cars, SUVs and commercial vehicles were sold in June 2009 making it the third highest selling month on-record, following 106,541 in June 2008 and 105,097 in June 2007.

“This is excellent news for the Automotive industry and the Australian economy as a whole,” VACC Executive Director, David Purchase, said.

“For sales to increase by more than a third on the previous month is outstanding.

“These figures can directly be attributed to the role of small business owners. They have recognised the significance of the Government’s Investment Allowance and purchased new vehicles. The Government’s stimulus package has had the desired effect and business owners have used it to their advantage.

“According to the Federal Chamber of Automotive Industries (FCAI) the business tax break has led to an additional 10,000 vehicles being sold over the past three months. That is a huge boost to the economy ahead of the end of the financial year.

“However, business owners should not think that July 1st marked the end of the incentive scheme. The Investment Allowance continues, albeit in a reduced form, until the end of the year.

“In May’s Federal Budget, Treasurer Wayne Swan announced that Small Business, with a turnover of less than $2million, would be entitled to claim a 50 percent tax deduction for eligible assets costing more than $1000 acquired before 31 December 2009.

“Larger businesses can claim 10 percent on eligible assets until 31 December 2009.

“Therefore, the incentive scheme is still available and we urge business owners who have not accessed it so far, to do so. It is an opportunity for small businesses to upgrade company vehicles with incentive provided by the Government. As borne out by today’s figures, its value is clear,” Mr Purchase said.