Car sales take another dent in May

Expect a boom in June as car sales are down for fifth month in a row.

Stand by for unprecedented discounts on new cars as dealers become increasingly desperate to make up for five months in a row of sales decline. After last year's all-time high the industry had forecast another record year for new-car deliveries and ordered stock in huge numbers -- but there is now an oversupply of vehicles.
 
Despite record low interest rates, sales of new cars were down again in May, after a hitting a two-year low in April and starting 2014 behind last year's sales rate.
 
"It's going to be crazy this month," said one dealer principal with 25 years in the trade. "None of us (dealers) can figure out why the market is so tough. Interest rates are low, prices are sharp, but everyone is sitting on a stack of cars."
 
The dealer said it was "too early to say" if the Federal Budget may have dented consumer confidence when it comes to cars, as it was delivered half way through the month of May.
 
"But if June is down we will know if something is seriously wrong, it's our biggest month of the year," he said.
 
RELATED: Car sales down in April 

MORE: Holden Commodore sales surge 

Official figures released Wednesday show 94,562 new vehicles were delivered in May, a decline of 2.3 per cent compared with the same month last year. The decline wasn't as great as April, which was down by 5.2 per cent, the biggest drop in two years.
 
However, the May result means sales in the first five months of this year when combined are down by 2.9 per cent compared to the same period last year (to 441,642 for deliveries from January to May).
 
Seven of the top 10 brands posted sales declines in May; only Holden (up 8.7 per cent), Hyundai (up 4.7 per cent) and Nissan (up 6.0 per cent) bucked the trend.
 
The Toyota Corolla was Australia's top-selling car for the third month in a row, but the Mazda3 still leads year-to-date after an unusually high number of demonstrator vehicles were registered in January and February. Toyota, market leader for the past 11 years, again outsold its nearest rival Holden by almost two-to-one.
 
But, as a further sign of our changing tastes in cars, there was a scuffle for third place between Hyundai and Mazda. Hyundai (up 4.7 per cent) overtook Mazda (down 4.7 per cent) for the second month in a row after beating Mazda four times in 2013.
 
In other upsets, the Volkswagen Golf made it into the Top 10 (for only the 12th time ever) although its tally of 2301 deliveries was still nowhere near its all-time high of 3337 in October 2011.
 
Australians are continuing to buy luxury cars in record numbers, with sales of Audi (up 15.8 per cent), BMW (up 8.2 per cent) and Mercedes-Benz (up 11.6 per cent) all posting increases. Mercedes-Benz made it into the Top 10 for the first time ever, outselling its rivals in the five leading passenger-car categories while BMW led two of the three luxury SUV categories.
 
The figures from the Federal Chamber of Automotive Industries show private buyers are driving the overall market. Sales to fleets and businesses are down by 9.1 per cent compared with the same month last year, whereas sales to private buyers are up by 1.6 per cent and continue to represent just over half of all new-car sales.
 
Top 10 brands in May 2014
Toyota: 17,246 -- down 9.2 per cent
Holden: 9012 -- up 8.7 per cent
Hyundai: 8403 -- up 4.7 per cent
Mazda: 7751 -- down 4.7 per cent
Ford: 6950 -- down 4.0 per cent
Nissan: 6281 -- up 6.0 per cent
Mitsubishi: 5780 -- down 17.6 per cent
Volkswagen: 4918 -- down 11.0 per cent
Subaru: 3202 -- down 8.6 per cent
Mercedes-Benz: 2611 -- up 10.0 per cent
 
Top 10 cars in May 2014
Toyota Corolla: 3871 -- up 6.3 per cent
Toyota HiLux: 3313 -- down 9.5 per cent
Mazda3: 3291 -- up 7.8 per cent
Holden Commodore: 2648 -- up 60.8 per cent
Hyundai i30: 2553 -- up 1.6 per cent
Ford Ranger: 2317 -- up 35 per cent
Volkswagen Golf: 2301 -- up 46.1 per cent
Mitsubishi Triton: 2254 -- down 13.5 per cent
Mazda CX-5: 1715 -- down 3.5 per cent
Holden Colorado: 1689 -- up 22.5 per cent
Nissan Navara: 1541 up 2.5 per cent
 
2014: The year so far
January: down 3.7 per cent
February: down 3.8 per cent
March: down 0.1 per cent
April: down 5.2 per cent
May: down 2.3 per cent
 
Source: Federal Chamber of Automotive Industries, all percentages compared to the same month the previous year.