NZ market: Growth ahead of expectations

NEW ZEALAND new vehicle sales rose 18.7 per cent in the first half of the year, putting the market well ahead of predictions made at the start of the year of only a 5.0 per cent rise.

The market reached 49,849 units to June 30, with passenger car sales rising 21.9 per cent to 38,145 and light-commercial vehicles up 9.2 per cent to 11,704.

Used import sales fell 5.7 per cent to 39,293 in the first half.

Some of the improvement in new vehicle sales is attributed to the drop in deliveries after the Japanese earthquake and tsunami in March last year, and the lift in supply during the corresponding period this year to catch up with both that and the Thailand floods later in the year.

However, industry experts believe the continued upward trend suggests underlying demand has also increased, despite quavering business confidence.

Some of the increased demand also comes from a temporary boost to commercial and SUV sales on the back of the post-earthquake Christchurch rebuild, where building assessments continue and the CBD is still closed as demolitions continue.

Motor Industry Association CEO Perry Kerr said the June market was the second-best in 23 years.

From top: Suzuki Swift Ford Ranger Nissan Navara.



“While we could expect any comparison with last year, when the industry was hit with severe stock shortages, to be up month over month or year over year, sales are particularly strong.

“For example, June new car registrations were the highest since 2005, which was a peak in sales over the preceding 16 years – back to 1989.

“Stock has now returned to normal and this, coupled with the New Zealand National Agricultural Fielddays, the Fieldday specials, along with new model releases, is obviously capturing the public’s attention.”

Toyota had a massive June to offset last year’s drop, almost doubling sales to 2394 and contributing to a year-to-date rise of 22.5 per cent, to 9877.

Toyota NZ general manager sales and operations Steve Prangnell said the company had benefitted from catch-up deliveries, the addition of new models and the general market trend.

“I’m still surprised how strong the market growth continues to be,” he said.

“June clearly saw catch-up for several brands, but if you annualise it, the market is running around 110,000, and we were talking 90,000. I don’t think the third and fourth quarters will come back that far, so the year will be significantly up.

“Toyota had its second-best month in 25 years of sales, exceeded only by October 2008’s 2936, including Daihatsu and Lexus – compared to 2475 combined this year.

“It will be September before we see the natural balance of the market rather than catch-up.

“The used car market is declining as a result of price pressure and regulatory changes while the new car market is headed for pre-recession levels by 2015.”

Neale Hill, the managing director of Ford NZ – which finished second for the half-year with 5418 sales, up 24.7 per cent – agrees that the market will remain strong in the second half.

“I don’t foresee the market slowing or backing off in the second half,” said Mr Hill.

“Next year, I would anticipate lower levels of year on year growth. I don’t see structural reasons we’d go backwards, but after this year’s recovery from last year’s low numbers, it won’t drop back.”

Holden was third to the end of June, up 15.4 per cent to 4335, followed by Hyundai, up 21.3 per cent to 4138 thanks to Veloster, i40 wagon, Accent and Elantra new model introductions.

Hyundai NZ general manager Andy Sinclair said Christchurch sales have been especially strong.

“They’re still in the process of pulling down buildings rather than putting new ones up and people have money or have had payouts,” he said.

“SUV sales are very strong there and not just in the commercial sector as streets are still significantly damaged.”

Nissan (up 21.6 per cent to 3436), Mazda (up 11.5 per cent to 3250), Suzuki (up 9.9 per cent to 2829), Mitsubishi (up 8.7 per cent to 2724), Volkswagen (up 6.8 per cent to 1996) and Kia (up 33.9 per cent to 1565) completed the top ten for the first half.

The top-selling model in 2012 is the Toyota HiLux with 2174 sales – its 676 June tally was its best month on record – followed by the Toyota Corolla (1941), Suzuki Swift (1734), Nissan Navara (1443) and Ford Ranger (1440).

NZ Top 10 brands (June 2012)
Rank	Make	Sales	% Share
1	Toyota	2394	23.7
2	Ford	1251	12.4
3	Holden	932	9.2
4	Nissan	721	7.1
5	Hyundai	710	7.0
6	Mitsubishi	557	5.5
7	Mazda	516	5.1
8	Suzuki	451	4.5
9	Vokswagen	410	4.1
10	Kia	276	2.7