December Vehicle Sales Review

Traditionally one of the slowest months for new car sales, December 2009 proved no exception with sales of 3973 units rounding off one of the poorest years for some time,    according to official registration information released by the NZ Transport Agency.  Sales for December were off almost 24 percent compared to a year earlier.

A total of  54,403 new cars were sold in 2009, down nearly 26 percent over 2008 making it the lowest new car market since 1998.  Standout performer for the month was Mazda, who in reaching second spot for the month turned in their best performance ever.

Motor Trade Association (MTA) spokesman, Ian Stronach, said that while sales in 2009 had been affected by the economic slowdown, it was nevertheless encouraging to see that the market had stabilised somewhat in the second part of the year.

“Vehicle markets across the world were generally well down last year, but it’s pleasing to see that that the New Zealand new car market has started to recover and is managing to do so without the direct stimulus packages from governments that we saw in other markets.” he said.

“After a very slow start to the year, things have picked up in recent months in both the new and used car sectors, and there’s reason to be cautiously optimistic for 2010.”

In a difficult year for new car sales, there were few real gainers, although Korean manufacturers Kia and Hyundai went strongly against the trend, as too did German premium car makers BMW and  Mercedes Benz. 

Long-time favourite Toyota Corolla remained as New Zealand’s most popular car-line, followed by Holden Commodore, Suzuki Swift, Ford Falcon and Mazda3.  And, while most of the leaders suffered in terms of overall volume, Hyundai’s Getz, Santa Fe and I30 models along with the Toyota Yaris and Mazda3 went against the trend, increasing actual volume

Imported used car registration volumes showed a similar pattern, and were down 24 percent for the year.  Not only were sales in this sector affected by economic conditions, but restrictions on availability of qualifying models that met emissions standards also played its part.  The year ended on a more positive note with the number of vehicles being registered in November and December up sharply over previous months; Decembers 7604 units was the highest in more than 18 months. The gradually increasing availability of stock qualifying for import along with the steady strengthening of the New Zealand Dollar against the Yen during the past year will give some encouragement to this sector of the industry.

In something of a surprise, the top spot for the month went to Nissan’s Sunny which ended long-time favourite Subaru’s Legacy run as leader.  It wasn’t enough to alter the year as a whole with Legacy starting as it ended as New Zealand’s most popular used imported model, followed by Toyota’s Vitz and, Corolla.

Toyota remained the most popular used import car brand overall ahead of Nissan, Honda, Mazda and Subaru.

Sales of new Commercial Vehicles were likewise hit with just 1012 units registered during December.  Total registrations for 2009 reached 15,644 down 34 percent compared to 2008 and the lowest since 1999.

Used commercial vehicle registrations continued to fade in the face of limited availability of qualifying units, with 2009’s total of just 3154 units being the lowest since 1988.

Long immune to any downturn, motorcycle sales last year fell back to levels last seen in 2004/2005; the first fall in year on year growth for five years.  December sales of 622 units were barely half of that recorded in 2008 with the market down overall 44 percent for the year.  Perhaps somewhat surprisingly, hardest hit was in the sub 60cc or Moped class with sales of by 51 percent for the year.  Sales in this category fell back markedly in the face of what by recent standards were relatively affordable and stable fuel prices throughout the. Larger motorcycles weren’t immune either and sales were off 46 percent. 

Suzuki kept its grip on market leadership again  heading off Harley Davidson, Honda Triumph and Yamaha.

Despite coming off one of its weakest years in some time, the outlook for 2010 remains positive says Stronach.

“Momentum is building. Many vehicles were not replaced over the last year or so when they would normally have.  Vehicles that have been retained for longer than normal will need to be replaced this year; it’s not uncommon for business related vehicles to be clocking up more than 30,000 kilometres a year and with a good number having been extended by a year or more already, wear and tear becomes a key and unavoidable factor.

“Add to this the increasing availability of credit, the introduction of more Chinese distributors offering very competitively priced vehicles and provided the New Zealand dollar remains at today’s levels, then you have a market that’s providing just the sort of environment you need for increased sales – both new and used” he added.