The performance of car sales and overseas travel have been the two outliers in the almost chorus like call of gloom from economists and others about a two speed, recessed domestic economy.
In fact car sales in 2011 are now on track to reach near record levels, while the number of Australians travelling overseas is running at record levels.
Both areas have been solid now for more than a year as Australian’s save more spend smaller amounts in shops and other retail outlets, buy more online at home and offshore, and do what they can to take advantage of the stronger Australian dollar.
All this is not what you’d expect to see if you believed the recent spate of cautious consumer reports and weak readings from various consumer and business confidence surveys.
In the past couple of days we have had not only confirmation that the level of activity in the economy is stronger than previously thought (see above story), but that car sales and travel remain strong.
Yesterday we learned that car sales in August continued at near record levels, which is not quite what you’d believe if you went on consumer or business confidence data as a guide.
Figures for August sales from the Federated Chamber of Automotive Industries (FGAI) showed industry car sales rose 7.3% from August last year and were up 4.3% over August.
Another month of recovering imports from Japan helped boost sales, with rental sales up 25% in the month (helping Australian-made cars) and private sales rising a solid 9%.
The FCAI said 88,082 new vehicles were sold during August, representing an increase of 5,960 vehicles over August 2010.
“These positive figures are good news for the automotive industry in Australia, and put the industry firmly on track to achieve the one million sales target for 2011,” said FCAI acting Chief Executive Steve Payne said in the statement.
Mr Payne said the robust August sales reflect a range of factors, including the attractiveness of the very large range of models available to Australian buyers.
“We’re continuing to see a recovery in supply from earthquake and tsunami-damaged Japan, along with stronger sales in Queensland as the state recovers from severe weather events earlier in the year,” he said.
Among the top 10 best-selling makes Mazda had its best-ever month, ranking third in August with 9,138 new vehicle sales. Passenger vehicles accounted for 6,783 of Mazdas sold, up more than 44% on August 2010.
Sales of Holden’s locally manufactured vehicles were up 55% month-on-month, reflecting strong demand for the company’s Commodore and Cruze models.
Mr Payne said private and business customers are continuing their shift toward compact SUVs and 4×4 utility vehicles, with respective sales growing 4.9% and 6.7% year-to-date.
“The Luxury SUV segment also continues to strengthen, up 18.9% year-to-date.
“Despite these encouraging figures, year-to-date new vehicle sales are still trailing 2010 levels by some 4.4%, or 30,357 vehicles.”
Mazda3 was the best selling single model in August, with 4234 reported sales. Holden’s Commodore and Cruze models placed second and third with 3632 and 3234 sales, followed by Toyota Corolla (3100) and Toyota HiLux (2823).
Toyota was the best selling brand in August, selling 15,885 vehicles for an 18% market share, followed by Holden with 11,534 (13.1%) and Mazda with 9138 sales (10.4% market share).
Top 10 cars sold — August 2011: Mazda3 (4234), Holden Commodore (3682), Holden Cruze (3234), Toyota Corolla (3100), Toyota Hilux (2823), Hyundai i30 (2418), Mazda2 (1966), Ford Falcon (1665), Ford Territory (1625), Toyota Camry (1607).
Top 10 Year to August: Toyota (113,993), Holden (84,923), Ford (61,334), Mazda (59,918), Hyundai (57,621), Nissan (44,767), Mitsubishi (41,309), Volkswagen (27,746), Subaru (24,371) and Honda (21,645).
Given the strong sales, it’s hard to see why big Sydney car sales group, Damelian, has been put into administration.
But an AAP report yesterday said that was the case.
"Motor vehicle dealership Damelian Automobile has been placed in receivership with debts of at least $80 million.
"Ferrier Hodgson partners Steve Sherman and Jim Sarantinos have been appointed receivers and managers after the prominent Parramatta Road car dealership was put into receivership by an unnamed secured creditor.
"The appointment of receivers came after an extended period of support by the creditor, who is owed around $80 million by the car dealership."
The group sold a variety of brands including Honda, Suzuki, Renault, Citroen, Fiat and Alfa. It also had a large used car business.
And last Friday, the ABS reported that the number of Australians travelling overseas in July was again higher.
The ABS said the number of Australians travelling abroad rose by 3.2% in seasonally adjusted terms in July to 661,100 – the second-highest figure on record.
Overseas departures were up more than 10% in the seven months to July, compared with the same period last year.
In contrast, visitor arrivals are up just 0.4%, the ABS said.
