GoAuto chronicles a decade of growth
BY JAMES STANFORD AND TERRY MARTIN | 14th Sep 2009
Back in 1999, the GoAuto Newsroom was reporting on 43 car brands in Australia and a new-vehicle market of 786,845 sales. Last year, the number of brands clamouring for customers had grown to 51, and the market recorded its second successive annual sales total of more than one million new vehicles.
The brands increase comes despite some brands shipping out. Those to have left over the past decade include Asia Motors, Daewoo, Daihatsu, Seat and MG and Rover.
Daewoo officially withdrew from Australia in 2004 with new part owner Holden claiming the brand was unviable. Late in 2005, Holden then began importing Daewoo models with its own lion badge, marking a shift in direction that saw it look more towards Asia – a cheaper source – for its small and medium-sized cars rather than its European arm Opel/Vauxhall.
Among the models to arrive here were the Barina, Viva, Captiva and Epica, ahead of this year’s all-new Cruze. Once the Astra run-out ends, no Euro Holdens will remain.
When Toyota Australia announced it was withdrawing Daihatsu from Australia in 2004, just after a promising new Sirion light car had been introduced, there was speculation Toyota would do the same as Holden, but this has not materialised.
Indeed, Daihatsu cars wearing Toyota badges, or the reintroduction of the brand itself, remain an option for Toyota Australia, should it decide to compete with a raft of cut-price cars from low-cost bases. But it is unclear if it will.
The Seat exercise was short-lived, with independent distributor Inchcape pulling the pin on the Spanish presence in 1999 after just four years, blaming the Asian economic crisis as a key reason for failure. The question remains whether Volkswagen Group Australia, which reintroduced Skoda in 2007, decides there is enough room here for Seat as well.
Among the other marques to return over the period is Renault, which has had a tough time after a massive initial marketing splurge and over-ambitious sales targets. Nine years on, the French brand is still waiting on a car that can sling it into the mainstream.
We have also welcomed Fiat, first with a van (Ducato) before its passenger-car range, as well as Mini, Smart and Ford Performance Vehicles, the latter a modern incarnation of the previous Tickford unit.
Maybach was introduced in 2004, under the wing of Mercedes, although only a handful of the super-expensive limos have been sold. That same year, legendary Australian racing marque Elfin relaunched with a bang at the Melbourne motor show and was later bought by HSV owner Tom Walkinshaw.
Chrysler brought its youth brand Dodge to Australia in 2006, while heavier American metal arrived the following year in the form of GM’s Hummer. The Indians had another tilt at the Australian market in 2007 with Mahindra and its Pik-Up ute, after an on-again/off-again foray by Tata.
Isuzu introduced its own ute in 2008 after supplying Holden (with the Rodeo) for decades, the Trivett Group opened up order books for the super-fast Bugatti Veyron and Melbourne-based sportscar maker Bolwell relaunched with the all-new Nagari.
The most recent Australian arrival is Australia’s first Chinese brand – Great Wall Motors – and we can expect several more affordable, although perhaps not as cheap as some might expect, Chinese offerings within the next few years.
Geely, Chery, Lifan, Nanjing and Roewe are just some of the Chinese marques likely to try to win over Australians from as early as next year. Indian low-cost manufacturer Tata could also follow Mahindra to Australia with a range of vehicles, possibly even a premium version of the Nano it is preparing to launch in Europe.
The market’s latest budget-car orientation has already had an effect with Suzuki bringing in the Alto sub-light car to sit beneath the Swift, and Proton set to launch the S16 sedan to give it a new entry-level car in an attempt to head off the Chinese challenge. Smaller cars from Hyundai are also coming soon.
Australia is also likely to see some more premium models, although the global financial crisis has slowed their introduction. Nissan still intends to reintroduce the Infiniti brand to Australia, although the timing is not locked in.
We could also still see the Cadillac brand after a plan to introduce it locally was abandoned earlier this year, pending a revision of the business case by the newly restructured GM. Holden came so close to launching Cadillac that it actually received a batch of cars, some of which it sold and the remainder it exported.
Just what will happen to the GM’s other soon-to-be-sold brands, namely Saab and Hummer, remains to be seen.
The new-car market has certainly changed a lot in a decade. It is increasingly fragmented compared with the days when the locally built large cars dominated. Customers are now demanding variety they want something different to their next-door neighbour.
This has led to a big increase in the number of imported cars, which are more affordable, partly due to reduced tariffs, as well as a massive increase in SUVs.
Interestingly, back in 1999, they were called All Terrain Wagons by industry data compiler VFACTS – and here at GoAuto we routinely called them 4WDs – but this changed to SUVs as more and more models were released that looked like off-roaders but could not actually manage difficult terrain. Four-wheel drive was not always offered, either.
To the end of August 1999, Australians bought 69,869 SUVs. This year, even with far higher fuel prices, that number is running at 138,918.
Sales of light commercial vehicles have also risen dramatically, with Australians buying 112,672 to the end of August. During the same period back in 1999, sales stood at 74,667.
This can be attributed to economic growth, but also the fact that once-traditional workhorse models have become mainstream recreational vehicles. Crew-cab utilities, which are now civilised enough to be used as family transport, are a good case in point.
The passenger-car market, which does not include SUVs or commercial vehicles, has actually contracted in the past 10 years. To the end of August 1999, the passenger market stood at 365,439 and has dipped to 353,052 for the same period this year.
What effect will the advent of new hybrid and full-electric powertrains have? A massive one, over time. Will we see a move away from SUVs back to traditional passenger cars? We expect that to be the case – although the exact extent is something GoAuto will continue to monitor, and report on, in the years to come.
| Timeline | |
| 1999 | Seat and Asia Motors leave |
| 2000 | Renault arrives |
| 2002 | Fiat, Mini and Smart arrive, FPV replaces Tickford |
| 2004 | Maybach and Elfin arrive, Daewoo leaves |
| 2005 | Daihatsu, MG, Rover and Daihatsu leave |
| 2006 | Dodge arrives |
| 2007 | Hummer, Skoda and Mahindra arrive |
| 2008 | Isuzu Ute, Bugatti and Bolwell arrive |
| 2009 | Great Wall arrives |