The headlines said car sales down in May, and so they were.
The headlines also pointed to an improvement in May, and so there was.
Baldly stated car sales were off 15% compared with a drop of nearly 22% in February.
The Federal Chamber of Automotive Industries (FCAI) said 75,441 new vehicles were retailed last month – 14.9% or 13,199 less than in May last year.
But that was the best month so far this year.
The May result left the market down 19.2% on a year-to-date basis.
The figures for May from the Chamber are actually an example where the month to month changes should also be examined.
This time the improvement is noticeable.
Car ‘retailed’ to retailers in may were more than 10,000 more than the 67,079 retailed in February. That’s a rise of 15.3%.
Now that’s a significant improvement and more than offsets the obvious fall from the higher months of 2008.
Unlike in the US where car sales remain weak (See Separate story), but showing signs of steadying, our market is starting to grow after the dip in the last quarter of 2008 and the early months of this year.
Sales in some European markets are better (Germany, France and the UK) thanks to Government moves to introduce car scrappage schemes or to use tax incentives.
That’s how the Australian government has gone here with the investment allowance for small and medium business of 30%-50%.
There is positive news in the latest vehicle sales figures with increased business purchases providing a much-needed confidence boost to the market," the FCAI said in a press release.
"Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 75,439 passenger cars, SUVs and commercial vehicles were sold in May 2009 – down 14.9 per cent (13,201 vehicles) compared to the same month in 2008.
“The May figures provide a tangible indication that new vehicle sales have stabilised and indeed there are even grounds to suggest we may see signs of improvement in coming months,” FCAI Chief Executive Andrew McKellar said.
"Sales to business buyers in May were only down 7.2 per cent on a year ago.
“There is clear evidence that the Federal Government’s business tax break is providing the market with a renewed sense of optimism and confidence,” Mr McKellar said.
“The business tax break is proving extremely effective, providing a much needed boost to vehicle sales and stimulating economic activity,” he said.
“Vehicle brands have been promoting this incentive heavily in recent few months and since the legislation has been passed there has been a perceptible increase in business sales,” he said.
"Year-to-date 352,374 new vehicles have been sold, down 19.2 per cent compared to the same period last year.
"Toyota continued in the top sales position in May with 15,481 vehicle sales, ahead of Holden with 9,177 and Ford with 8,440."
Korean groups, Hyundai and Kia both sold more cars this May than they did last May, despite the fact that there was one less selling day.
Hyundai sales were up 32% as it continues to advertise heavily and push its low cost, value for money line. Kia recorded a modest lift.
The luxury end of the market also showed encouraging signs, with Audi up 14% and Mercedes-Benz up 7%. The latter has had heavy run out and special offers for some of its models.
The Holden Commodore and Ford Falcon both did better than the overall market, but Toyota’s four-cylinder Camry had a heavy 30% drop in sales and Ford’s Territory dropped 23%.
But output of local cars is falling: down to 12,792 in April, the last month for which there are figures. It was more than 28,700 in April last year.
