NZ October market lowest in a decade

NEW Zealand new-vehicle sales last month failed to crack 7000 for the first time in October since 1998, reaching just 6898 units – down 26.1 per cent on the same month last year.

Traditionally one of the best sales months for the NZ motor industry, October this year was particularly soft for commercial vehicles, which were down 34.7 per cent on the same period last year, to 1218 units.

However, passenger cars fared better, enjoying their best sales of the year at 5680 units, bettering September’s 5593 units, but still down 24 per cent on October 2008.

Year to date, overall sales of cars and trucks are now bumping along at 29.2 per cent below last year, with the industry expecting the full year to end up about 30 per cent down on 2008 levels.

Motor Industry Association CEO Perry Kerr said the motor industry was not out of the woods, with October’s new passenger vehicle sales up only fractionally on September results.

Left: Toyota Corolla. Below: Holden Cruze.



“While we are satisfied that the new-car market appears to be holding, showing a minimal increase in passenger car sales from September to October, we are still cautious about prospects for the remained of the year and are taking a taking a slow but steady approach,” he said.

The NZ used import market has flattened too, its 6604 figure down just 10 units on October last year, with a full-year 30 per cent fall also expected.

In new cars, the top five companies remained virtually unchanged this month, with Toyota heading the table at 2106 sales, down 26.5 per cent for a 30.5 per cent share, followed by Ford (856 sales, down 34.3 per cent) Holden (744 sales, up 7.2 per cent) and Mazda (466 sales, down 27.8 per cent).

Hyundai consolidated a steady rise up the tables this year with 407 sales in October, up 6.8 per cent for a 5.9 per cent share, but its smaller sibling Kia was the month’s biggest mover.

Kia’s 213 sales represented a 142 per cent rise over October last year.

Kia NZ general manager Todd McDonald said Kia was riding the momentum from five new model releases, including Sorento and Koup, and changes to the dealer network. This time last year, Kia was in runout on several models.

Mr McDonald said Kia and Hyundai were benefiting from a recession-driven trend to rational, not emotive purchases. He expected Kia sales to soften in November with stock shortages.

Holden attributes its sales to continued interest in Cruze, and to a rise in Commodore sales after positive response to new, more frugal six-cylinder engines.

Meanwhile, the Europeans are maintaining a strong performance over last year, a trend exaggerated by the fact their sales fall came earlier in 2008 than the mass-market brands.

Audi NZ general manager Dane Fisher said the luxury market saw the pain six months before the mass market, and he expects a similar recovery pattern.

Subaru also bucked the trend, showing a 47 per cent rise with 147 sales in the month, thanks largely to newly-launched Legacy and Outback.

Meanwhile Peugeot has had another good month with a four per cent rise in monthly sales to 52.

Peugeot divisional manager Simon Rose said Peugeot NZ planned before the recession to aggressively market into fleet for the first time, and that was paying dividends with MAF and district health board sales.

He expects a dip in sales until January, but is optimistic a price drop will help numbers.

Peugeot NZ pays in Euro, which is less affected by the exchange rate merry-go-round than the yen.

“After the music stopped, we hoped our price points would be better off,” said Mr Rose, announcing a $2500 price drop for 207.

Honda and Mitsubishi, down 49.7 and 50.6 per cent year to date, are surviving thanks to good parts and service sales. Overall parts sales are down around five per cent, with Mitsubishi up and Honda virtually lineball.

The top-selling car in NZ in October was the Toyota Corolla, followed by the Holden Commodore and Ford Falcon.

Year to date, the Toyota Corolla continues as the country’s best-selling model with 4145 sales, ahead of the Commodore (2539) and the Suzuki Swift (1969).

NZ top 10 makes, Oct 2009:
Rank	Make	Sales	% Share
1	Toyota	2106	30.5%
2	Ford	856	12.4%
3	Holden	744	10.8%
4	Mazda	466	6.7%
5	Hyundai	407	5.9%
6	Nissan	358	5.2%
7=	Mitsubishi	273	3.9%
7=	Suzuki	273	3.9%
9	Kia	213	3.1%
10	Honda	164	2.3%

Source: MIA NZ, November 2009