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FCAI announces uptick in new vehicle sales in June

The Federal Chamber of Automotive Industries (FCAI) has revealed an uptick in new vehicle sales during June 2020, with a total of 110,234 vehicles sold during the month. 

While this represents a decrease of 6.4 per cent over June 2019, it is the strongest result since the beginning of the COVID-19 crisis which saw March sales down 17.9 per cent, April sales down 48.5 per cent and May sales down 35.3 per cent.

FCAI chief executive, Tony Weber, attributed the slight recovery to the easing of COVID-19 restrictions, seasonality, the extension of the Federal Government’s instant asset write-off scheme, and brand and dealer pro-activity.

“Some states have seen the easing of COVID-19 restrictions, and this has increased floor traffic through dealerships,” Mr Weber said.

“In addition, June is traditionally a very strong month for new vehicle sales. The End of Financial Year campaigns are well known, so it’s an excellent time for businesses and consumers to replace their vehicles.

“In June 2020, this has been reflected in strong results for business purchases, which have increased by 6.3 per cent on June 2019.

“The extension of the Government’s instant asset write-off scheme has also been a positive influence.  This program allows businesses to bring forward tax deductions for eligible expenditure.

“Finally, we have seen a strong surge in marketing activity from both brands and dealerships, who are offering an array of attractive retail packages in a bid to recover from the impacts of the COVID-19 pandemic.

“With all of this activity favouring consumers, there’s no doubt that there has never been a better time to negotiate the purchase of a new vehicle,” Mr Weber said.

Toyota was the best-selling brand in June, with 22,867 sales recorded.  In second place was Mazda with 9,420 sales, followed by Hyundai with 7,737 sales, Ford with 7,624 sales and Mitsubishi with 7,419 sales.

Four of the five top selling vehicles in June were 4x4 vehicles, reflecting the unique nature of the Australian market. The top-selling vehicle was the Toyota Hi-Lux with 6,537 sales (up 21.1 per cent on June 2019), followed by the Ford Ranger with 5,329 sales (up 9.9 per cent), the Toyota Corolla with 3,008 sales (down 4.1 per cent), the Toyota Landcruiser with 2,909 sales (up 23.3 per cent) and the Mitsubishi Triton with 2,721 sales (up 1.0 per cent).

Despite these ‘green shoots,’ June represents the 27th consecutive month of decreasing sales for the automotive industry, a fact which, over time, has been attributed to a number of environmental, political, financial and health issues within the Australian market.

Mr Weber added that associated Government initiatives had likely supported the slight recovery. 

“Stimulus packages from the Federal Government, such as Job Keeper and Job Seeker, have helped to restore some consumer confidence and supported the small bounce back during June.

 “However, there’s no doubt that the new vehicle industry in Australia is still under high pressure.  We’re not out of the woods yet,” Mr Weber said.

Summary by Class:

Key Points:

  • The June 2020 market of 110,234 new vehicle sales is a decrease of 7,583 vehicle sales or -6.4% on June 2019 (117,817) vehicle sales. June 2020 had one more selling day (25.2) than June 2019 (24.2), however this resulted in a decrease of 494.1 vehicle sales per day.
  • The Passenger Vehicle Market is down by 8,828 vehicle sales (-26.1%) over the same month last year; the Sports Utility Market is down by 1,578 vehicle sales
    (-2.9%); the Light Commercial Market is up by 2,273 vehicle sales (8.6%); and the Heavy Commercial Vehicle Market is up by 550 vehicle sales (13.5%) versus
    May 2019.
  • Toyota was market leader in June, followed by Mazda and Hyundai. Toyota led Mazda with a margin of 13,447 vehicle sales and 12.2 market share points.