Financial crisis hits Australian new car sales

By George Skentzos | November 06th, 2008

A sharp drop in new vehicle sales for October has been credited to the current global financial crisis, with official figures released today by the FCAI showing that 79,105 cars, trucks and buses were sold in October.

This figure is down 11.4 percent or 10,184 vehicles compared to the same month last year, with overall year-to-date new vehicle sales down by 0.9 percent for a total of 864,037 sales.

This is compared to an overall 0.3 percent increase in new vehicle sales year-to-date by September 2008, which had the automotive industry poised to topple the 2007 record sales year.

“While it is clear that current economic uncertainties have affected consumer demand, the industry is also monitoring the impact of liquidity constraints on the availability of wholesale finance to dealers,” FCAI Chief Executive Andrew McKellar said.

The industry is working to find an alternative solution in the wake of the financial crisis in order to avoid the risk of any further disruption to the market.

“The most recent interest rate cut was well justified and will hopefully go some way to rebuilding confidence in the marketplace,” he said.

Light commercial vehicles disrupted the trend by recording a 7.9 percent increase in sales for the month, however all other segments recorded a significant decrease for October.

Passenger vehicles are down 13.8 percent, SUVs down 19.1 percent and heavy commercial vehicles dropped 15.9 percent.

Toyota has retained its dominant sales position for October, with a market share of 23.6 percent bolstered by a record 200,000 plus new vehicle sales for the year so far – the first time any company has reached this total prior to November.

“Total sales this year are running close to the record levels of last year and will exceed one million for only the second time on record.” Toyota senior executive director sales and marketing David Buttner said.

“That is in stark contrast to other countries, such as the United States, where sales last month were down more than 30 per cent on the previous October.”

The HiLux made a significant contribution to Toyota’s overall tally of 202,511 for the first 10 months of 2008, as the top selling vehicle this October.

Holden is in a distant second place with 109,771 sales representing a 12.9 percent overall market share with Ford trailing in third place with 89,983 sales for a 10.8 percent market share.

Stevo the Devo

With the falling aussie dollar the cost of new cars will skyrocket. That should help our local car industry.
abc

Good. Hopefully the government will cut the import tarif sooner and the dealers cut their price significantly.
I also hope those wannabies (who overstretched and borrow too much just to get a luxury car) will be unable to make repayment and get their car repossessed.
http://. Naughtyius Maximus

Thats what gets me about most people……reality is car companies need to finetune there manufacturing process and sharpen pencil extremely keen. SAME OLD SAME OLD ETHOS THAT THEY SHOULD STOP THE BLAME GAME AND LOOK AT THERE BACKYARD AND ADAPT (Toyota has!)
Bret

Whislt the numbers are down, it’s not anywhere nearly as bad as the USA and parts of Europe.

Sales of Australian made cars:
Ford Down 2%
Holden Down 13%
Mitsubishi Down 99%
Toyota Down 16.5%

Total Down 16.6%
————————–

Sales of imported vehicles (significant volumes only):
Japanese Down 9%
Korean Down 30%
Germany Down 15%
Thailand Up 4%
South Africa Up 6.6%

Total Down 10.3%
Frontman

ABC, I will lmao when you get your wish and the Australian based manufacturers shut their doors leaving only imported vehicles on your shopping list. Because that’ll be at the same point where Inflation takes off, the Ausie dollar slumps to sub 50c and the only countries that can see any value in sending their wares here are China and India. Daewoo’s and Protons will be seen as luxury cars. (oh and I’ll be outahere). Because that is the scenario you are wishing for.
NM I had a chuckle at your comment, not because you are incorrect (except Toyota have done nothing except sold their porduct to the Government. The public have slowed on them as much as the other Australian. Oh and that’s from someone in Toyota’s largest dealer), but because what happens when a manufacturer tries to change?? The media and so called “eddie the experts” all rant about the staff being put off. Yes I’m talking about the constant reporting of half the facts from Ford and Holden engine company’s.
Considering that Ford actually showed growth this month (although you wouldn’t guess it through the madia {sorry but that includes CA as well}) even after loosing it’s mainstay client, government departments. Whilst all the so called major mover and shakers have had backward months.

Ford Total 8,567 8,206 (up 4.4%)
Holden Total 10,171 11,415 (down 10.9%)
Mazda Total 5,529 7,271 (down 24%)
Toyota Total 18,705 20,212 (down 7.5%)

Yes I know all the profitable Toyota comments and numbers and so forth, but realistically if Toyota couldn’t be profitable in Aust. then there would be something wrong. Being honest, what design dollars do they really have to put into their cars? The floorpan, Body pressings Toooling engines are all designed over seas and retuned for Australia. They don’t have to build a complete car to be here. (This is not a b***h session just a statement). However, as has been proven by sites like this one, if Ford were to start building the New Taurus or even a vehicle based on the S80 Volvo and called it a Falcon you lot would crucify them. Same if Holden went to Chevy Malibu based VE replacement. So can all the ney sayers please explain what the hell they want the way I read your comments you either just don’t want the manufacturers here or you want them to modernise without changing???
[CA perhaps you could moderate this comment and start a thread to ask this question. Do a story on the technical differences between say the three manufacturers and what the require first]

As for the Ausie manufacturers loosing market place, as I have said before it is because we have over 250 different types of cars available to chose from. Everyone will only return small numbers.

Sorry for the rant but I do struggle to understand the short sightedness of some people and the messages from others.
Wheelnut

Anyone who thinks that when the Tarriffs are abolished that the price of imported cars will fall are quite simply having a lend of themselves

Because [unfortunately] when it happens; its most likely that Holden Ford and Toyota will all move overseas and all of our cars [along with Televisions and even Food] will be imported.. as a result we will be at the mercy of the car companies

They have something we want and as there are no other [local] options they will be able to charge whatever they want for their cars..

Not that many Aussies will be able to afford a new imported car as there will be so many relying on Centrelink – given that the loss of 40’000+ jobs in the local auto industry will have a snowball effect through other industries such as retail finance tourism etc

Therefore; expect the prices of imported cars to be the same as they are now if not increase as the car companies will see this as an opportunity to increase profits.
http://caradvice.com.au Fourwheelbikie

Sales have dropped but largely from fear. Even with the Federal Government’s inept handling of the changed financial conditions, we are still in good shape in Australia. It is interesting but sad to see so many comments such as Abc who wants to see people not able to make repayments. Abc also wants tariff cuts and a significant price cut by dealers. How can the cuts be justified? Is there to be a drop in costs of running a dealership. (Note I am note a dealer.) Howc will tariff cuts affect the local industry, employment or balance of trade?
It is a great time to buy a new car before the lesser value of the Australian dollar sends the price of all cars upward. Australin made cars have significant imported components. I have used Private Fleet to buy my last car a couple of months ago. I got a great deal on a Chrysler. Wish I had found them (they are on the net) years ago.
maree

I WOULD LIKE TO SAY THAT I DON’T BELIEVE PRIVATE FLEET SOURCE GOOD DEALS FOR CONSUMERS. THEY INDICATE THAT THEY DO BUT I AM SURE THAT IF YOU DO YOUR OWN CHECKS WITH DEALERS YOU WILL DISCOVER THAT PRIVATE FLEET ARE VERY CONVINCING AND WILL CERTAINLY HAVE YOU BELIEVING THAT THEY HAVE SOURCED YOU THE ABSOLUTE BEST DEAL OUT THERE BUT I CAN ASSURE YOU THAT THEY DO NOT IN FACT GET EVEN CLOSE TO THE BEST DEAL OUT THERE. CHECK IT OUT FOR YOURSELVE AND YOU WILL GET A BIG SHOCK.