The Australian car industry continues to bear the brunt of the economic downturn, with new car sales down 22% last month, but we are a long way from the misery being experienced in Europe and especially the US.
US sales fell 41% last month after a 37% slide in January; our industry’s fall was 21.9% last month and 18.5% in January.
US sales are now at an annual rate of just over 9.1 million units a year, compared to 15.3 million in the same month of last year (and a falling 13.2 million for all of 2008).
Our falls are steep and accelerating; but so far they are not the plunge into depression levels being experienced in the US (And in Spain, Europe’s 4th biggest car market where sales last month fell 49%).
Local sales are 20% lower over the first two months of 2009 than they were in the same period of 2008. It’s the smallest sales figure for the first two months of any year since 2002.
February’s fall was second behind November’s 22.2 % fall, according to figures from the Federated Chamber of Automotive Industries.
Here it was across the board weakness, with fleet sales to the rental industry following the US trend and sliding. But unlike other markets, some brands lifted sales: Hyundai for example. It was also the best performer in the US.
Four-wheel-drives and prestige vehicles (so-called super luxury vehicles) were the worst hit last month, with sales large 4WD sales almost halving in the month.
So big was the fall among luxury cars, that some sold less than half the number they did a year ago, partly due to falling demand, but also to the August tax rise for these vehicles.
Australia’s big two US owned locally built cars, the Holden Commodore and Ford Falcon did OK: sales down, but not as much as for some makers.
The Commodore is now back as the country’s number one selling car despite a 22% drop in sales. Sales of the Ford Falcon were down by just 5%. Sales of Ford’s Territory fell a nasty 40%.
Toyota is still number one, but its Aurion large car model fell 40%; that goes with poor sales in the US and exports from Japan.
But in comparison with the United States market, the local industry is holding up well. General Motors’ US sales were down by 53%, Ford’s by 48% and Toyota’s 40%.
The Chamber’s figures showed that
70,241 passenger cars, SUVs and commercial vehicles were sold in February 2009 – down 21.9%, or 19,657 vehicles, compared to the same month in 2008.
"This result is consistent with the trend of recent months and reflects the impact of broader economic conditions on the new vehicle market," FCAI Chief Executive Andrew McKellar said.
The industry is urging potential car buyers to consider the significant opportunities that exist in the marketplace and to take advantage of recently announced measures to stimulate the economy.
"The Federal Government has taken action to provide businesses with a considerable tax break when they invest in assets, including new vehicles," Mr McKellar said.
Many businesses will be able to claim a deduction of up to 30 per cent of the cost of an eligible new vehicle purchased before 30 June 2009.
"The tax break provides a significant boost to business and will help encourage investment and broader economic activity," he said.
Toyota was Australia’s best-selling brand in February with 14,274 vehicles (20.3% market share) followed by Holden with 9,029 (12.9% of the market) and Ford with 7,396 vehicle sales (10.5% share).
Smaller, more fuel efficient cars fared better than most in February, with the Mazda3 and Toyota Corolla both outselling Falcon.
The slump in the 4WD market, (which had been growing strongly as importers battled it out in the diesel four by four market to small business) meant Toyota suffered more than most, with sales down by more than 30%.
Sales of work utility type vehicles were also down significantly, reflecting the overall drop in business confidence.
Fusion Strategy in Sydney said only two major brands recorded sales increases in the first two months of this year: Hyundai and up and Volkswagen’s prestige brand Audi. Another Volkswagen brand, Skoda did well, as did Fiat of Italy (which owns the sinking Alfa).
In February, strong sales campaigns for Mercedes and Dodge lifted sales, but Proton of Malaysia, Alfa Romeo of Italy and Saab battled to sell vehicles. Volvo, BMW, Suzuki, Peugeot and Lexus all suffered sales falls of between 16% and more than 30%.
Saab is for all intents and purposes a ward of the Swedish Government following its abandonment by parent, GM.
Unless someone comes up with the cash, its likely the company will linger in Government control for years, or be closed to save money.
