Market Insight: Slow year for little vehicles

EVEN though the recent new-car market roller-coaster ride appears to be coalescing this year into a record 1.2 million annual result, there are still some segments where the market is not doing as well – and it might be a surprise to find this is happening in some of the small, lower-cost vehicle segments.

The light SUV segment is stagnant with a 0.5 per cent increase year to date, while light passenger cars are down 12.2 per cent. Meanwhile, the micro passenger segment is going gangbusters, with a 38.8 per cent rise.

Sales figures for the sub-$30K light passenger car segment to the end of October are down from 35,342 units to 31,034, a 12.2 per cent drop.

Although the Suzuki Swift is up in sales from 3559 in the first 10 months of 2022 to 5827 for the same period this year (an increase of 63.7 per cent), it did much of the segment’s heavy losing, compared with modest 3.0 per cent and 9.9 per cent upticks for the Kia Rio and Mazda 2 respectively.

Sharp drops were recorded by the Suzuki Baleno that was discontinued in August (down from 5863 units to just 264 this year) and Volkswagen Polo, down from 1486 deliveries to 630.

Even the segment-dominating MG 3 is flatlining with growth of 0.5 per cent YTD and the Toyota Yaris – playing distant second in terms of segment share – is down a whopping 32 per cent.

Out of 10 models competing in the light SUV segment, all but three are in the red in terms of sales growth over the same period last year.

While the segment overall is trending at an increase of just 0.5 per cent, Toyota Yaris Cross volumes are down 28.8 per cent with 2005 sales, while the Kia Stonic is short 1513 sales or 20 per cent year-on-year.

Only the likes of the Mazda CX-3 (up 4692 units, or 54.4 per cent YTD) and Suzuki Ignis (up 419 sales, or 26.7 per cent YTD) with support of the Volkswagen T-Cross (up 351 sales, or 7.5 per cent) give this segment a solid 5462 sales volume shot in the arm it needed to not end up in negative territory overall.

Then there is the micro car segment, which has become so micro in model choice available that it now barely qualifies as a segment.

Just three models remain here since the Mitsubishi Mirage lost out to ADR side intrusion barrier changes a couple years ago and for which just one last example sold this year.

That leaves the Fiat 500 and its Abarth derivatives plus the Kia Picanto. The Fiat has seen volume double year on year from 345 units to 662, but most of the uptick can be ascribed to the old model run-out earlier this year in anticipation of an all-new battery electric model that launched in September.

While October monthly sales of 67 units show a steady acceptance of the new 500e, this is not a budget micro car, rather a hi-tech $60K city runabout. 

By contrast, the real working class hero here is the Kia Picanto, arguably the last blue collar bargain special of the new-car market.

With the Mirage gone and nothing else coming close (except if you consider the last of Suzuki’s Baleno from $18,490 before on-road costs or the $19,990 drive-away MG 3) boith from the next segment up, it is all good news for Kia at the bargain end of the market.

The Picanto (which starts at just $16,290 + ORC) has volume up a solid 63.1 per cent on last year, or from 4135 to 6743 sales. Nice time to be selling Picantos, then.

What is clear from the sales data is that nothing is a given in today’s new car market, but with sales slumping at the small end of the market, buyers might have some leverage to bag a bargain by negotiating prices even lower.