Vehicle sales slow in July but year-to-date totals still ahead of 2007 | Industry

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Vehicle sales slow in July but year-to-date totals still ahead of 2007

Written by Carl Jameson

Tuesday, 05 August 2008

The monthly VFacts vehicle sales report for July has revealed a slow-down in purchases compared to June’s brisk pace, but totals for the year so far are still ahead of 2007’s record-setting sales run. A slight downturn in vehicle sales was seen across all segments, including passenger cars, SUVs and commercial vehicles in July, reflecting a slowing economy as fuel prices and interest rates combine to pinch the average buyer’s budget.

Sales of passenger cars fell 2,531 vehicles, or 4.7%, in July compared to a year ago, and seasonally adjusted figures put July’s total of 83,976 at 6.3% below the June 2008 tally. Overall SUV sales are down 3.5% compared to 2007, though mid-sized SUVs are up 8.1%, bucking the overall market trend and indicating some buyers are still actively seeking out the vehicles.

Toyota widens lead, Holden drops back as Ford holds steady
Since 2007, Toyota has increased its overall market share from 22.2% to 23.6%, with July’s figure ending up at 24.4%. This means that nearly one in every four vehicles sold last month was a Toyota. Holden’s share, on the other hand, has fallen from 14.5% in 2007 to just 12.5% through July, 2008. Ford’s share has dipped only 0.2% to 10.2% in 2008.

Toyota’s bounty is founded on Corolla sales, which continue to lead the charts in overall volume. The Prado has risen to become the top-selling SUV, while increases in Yaris, Highlander and the company’s HiLux and HiAce commercial vehicles all combined to see the Japanese company’s sales increase 7.7% in July compared to last year.

SUV sales holding despite downward trends overseas
Unlike the United States, where SUV sales have plummeted so sharply that companies heavily invested in their sale are now in risky financial situations, sales levels in Australia have maintained a fairly level profile. For Toyota in particular, SUV sales have actually increased, rising 40.5% on the year.

Toyota Australia's senior executive director sales and marketing David Buttner thinks the utility and value offered by the SUV body style are managing to overcome the hype of high fuel prices. The company has also exerted effort to help its SUVs remain competitive in terms of efficiency, however.

"Customers of these vehicles are also benefiting from fuel-saving engine technologies such as direct-injection common-rail turbo-diesels and intelligent variable valve timing,” Buttner said.

In contrast, General Motors’ Hummer brand, which began sales in Australia only this year, has remained fairly steady, selling between 80 and 100 units per month for most of the year. Holden’s Rodeo SUVs have seen nearly 60% drops in sales, however, and Ford’s Escape is off almost 40% compared to last year, showing that not all SUVs are weathering the tough market as well as Toyota’s range.

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