Exchange rates add to NZ woe

THE New Zealand new-car market has suffered its worst April sales result in 35 years, with more pain to come as importers are forced to recoup exchange-rate shortfalls by phasing in price rises of up to 50 per cent.

April new-car sales were down 36.5 per cent on the same month last year, to 3525 units. Year to date, new-vehicles sales are down 32 per cent, to 17,497 units.

Commercial vehicle sales have been hit even worse, down 40.5 per cent on April 2008.

Year to date, combined new-vehicle sales have declined 33 per cent on the same period last year.

April’s used car import sales totalled 4759 – below the March figure but above February’s low. The 19,944 YTD total is down 44 per cent on the same period last year.

Toyota continues to top the passenger-car charts. Although its YTD sales are down 36 per cent on the same period last year, Toyota’s 16.13 per cent share is similar to last month’s and close to last year’s 17.25 per cent.

The Toyota Corolla widened its sales lead over Commodore in April – 1332 to 1033 – and the two nameplates are still the only ones to hit four figures YTD.

Toyota NZ senior general manager Alistair Davis expects Toyota’s share to grow if the recession deepens.

“We would expect customers in a recession to gravitate to brands they trust and expect to last,” he said.

Overall there’s little change in the order of the top 10 passenger car players.

Left: The Mitsubishi Lancer Evolution. Below: The Holden Commodore SV6.

However, Mitsubishi sold just 93 passenger cars in April, bringing its YTD tally to 636. That’s 67 per cent down on March, 75 per cent down on April 2008 and 63 per cent down YTD. It now holds ninth spot with 3.63 per cent market share, compared with seventh and 6.64 per cent at the same time last year.

Mitsubishi managing director Peter Wilkins attributes the drop in part to an April 1 price rise ahead of several competitors, and is confident his brand will rally. However, Mitsubishi has announced some redundancies.

Meanwhile, Ford still sits in second spot at 11.89 per cent share, ahead of Holden on 10 per cent.

Behind them is Mazda on 9.25 per cent, followed by Hyundai at 8.64 per cent and Honda at 7.09 per cent share.

Honda’s April passenger-car sales were down 40 per cent on last year, and YTD sales are down 27 per cent.

Honda NZ managing director Graeme Seymour says he is not unhappy with this tally, given Honda’s decision to lead with price rises, which will continue at three per cent a month.

He said companies holding prices “cannot live off excess stocks at favourable FX (currency exchange) rates for long, nor can they expect their struggling parents to help out sales-only operations in a small place somewhere south of Fiji at a time when all auto manufacturing plants are hurting badly”.

Honda NZ expects price rises to reach 50 per cent.

“Honda is expecting the remaining months of 2009 to be extremely difficult for the industry as it faces the effects of the global recession at a time when all distributors need to lift prices considerably to recover the effects of a much lower NZ dollar to avoid selling below cost,” Seymour says.

Suzuki remains in seventh spot on 6.5 per cent market share – up on March and only nine sales down over the previous month.

Nissan (5.36 per cent) holds the same share in April as March, with similar sales volumes ahead of the Murano, Maxima and Qashqai official launch this week.

Then there’s Mitsubishi in ninth place and Kia in 10th, holding share at 3.55 per cent share year to date, against 3.69 last month.

Volkswagen sits just outside the top ten this year, the best of the Europeans and one of the few to see a rise in share. Its 143 passenger sales earned ninth place in April, up 14 per cent on the previous month for a 3.2 per cent passenger share YTD, against last month’s 2.98 per cent.

Meanwhile, Mercedes-Benz and Lexus prove that even luxury brands can beat the trend. Mercedes April sales are up 13 per cent over the same month last year, and up 24 per cent YTD, while Lexus sales have risen 38 per cent April this year to last, and 33 per cent YTD.

But many smaller players are struggling. Jaguar sales are down 53 per cent YTD, though its April sales were line-all with last April. Alfa Romeo’s sales are down 58 per cent YTD, and Citroen is down 62 per cent.

Meanwhile, some minor brands are rallying. Though Volvo’s YTD tally is 17 per cent down its April sales are up slightly on last year, thanks to the launch of XC60.

Read more:

Toyota pain, Hyundai gain in NZ

NZ sales struggle rolls on in February