Skip navigation

carsguide.com.au

Car sales bottom out

  • By Paul Gover
  • Herald Sun
image Hyundai was the single brand in the top 10 to lift its result over the same month in 2008.

Only one major carmaker had any reason to celebrate when the showroom results for April were made public this week.

Hyundai was the single brand in the top 10 to lift its result over the same month in 2008 as new-car sales slipped to their worst level since the start of the global economic downturn.

April was a massive 23.9 per cent down on the same month last year, a result which also drags the year-to-date total back by 20.3 per cent and points towards a full-year showroom total in the 840,000 range.

Some of the pain was eased by the usual sales dislocation over Easter, which gave an excuse for some under-performers, as well as the potential for the Federal government's investment allowance to lift results in the selling days before the end of the financial year.

"While the figures confirm that market conditions remain soft, the extent of the fall has been compounded by the timing of the Easter holidays," says FCAI chief executive, Andrew McKellar.

"After adjusting for seasonal factors, sales in April appear to be broadly consistent with results of recent months and we remain hopeful that conditions will soon stabilise."

But Hyundai does not have to wait as it improved its result by a solid 12.3 per cent, improving from 3683 sales in April '08 to 4136 in April '09. The brand is also up more than 12 per cent for the first four months of the year, a huge contrast to market leader Toyota which dropped 37.5 per cent in April and is trailing its year-to-date effort in 2008 by 29.3 per cent.

Hyundai's i30 managed a best-yet ranking of sixth for the month, a result which even trumped its traditional showroom favourite, the Getz, in ninth. The numbers are not huge, 1491 for i30 and 1307 for the Getz, but reflect a significant boost for the brand.

So, why is Hyundai doing so well, taking fifth overall for the month?

"There is no smart answer for us. We've got a good team that is working well for us," says Ben Hershman of Hyundai Australia.

"We've gone up over the last few months and we believe there are three factors. The first is new product ...  secondly people are coming to value brands ... the third is that the i30 has brought people to look at Hyundai for the first time. We're seeing new customers walk into dealerships who would never have been there before.

"We've also very aggressive in our campaigns."

Hershman says Hyundai has also been helped by an improvement in the brand's secondhand values, even if it is only for the newer models which have arrived in the past three years. The Elantra alone has improved from a 47 per cent residual after three years to 57 per cent."

At the top end of the car sales chart, Toyota continued its leadership and GM Holden held onto favourite car choice with the Commodore.
But the two brands are split on their predictions, with Toyota forecasting a significant showroom improvement in coming months with Holden waiting for change.

"We expect a pick-up in sales for May and June, followed by a market that will be stronger in the second half of the year than in the first six months," Toyota's sales and marketing boss, Dave Buttner, says.

"I don't think anybody is beating their chest, it is and remains a tough market," replies GM Holden spokesman, Scott Whiffin.

But, with the Commodore continuing as Australia's most popular car, Whiffin said the company is getting some encouragement after the pain of downsizing its manufacturing operation in Adelaide to a single rotating shift.

"We're encouraged to see Commodore sales off only four per cent in a market that's down 25 per cent. You're also seeing flight to value in the market."

TOP 10 SELLERS
April 2009

1. Holden Commodore - 3177
2. Toyota HiLux - 2632
3. Mazda3 - 2503
4. Toyota Corolla - 2385
5. Ford Falcon - 2229
6. Hyundai i30 - 1491
7. Toyota Yaris - 1395
8. Nissan Navara - 1311
9. Hyundai Getz - 1307
10. Subaru Forester - 1239

 

Comments on this story

Displaying 3 of 4 comments

  • Mark, I think you must be the drunk one with that perception and single minded opinion. DO you research, compare and read the reviews from experts who actually know what there talking about. I have two hyundai's in a family. An i30 diesel and a terracan. We have never had a single stress with either and I enjoy driving them both. I've had plenty of new cars in my time, Toyota, Fords, Holden and mazda, the next car I buy will be another Hyundai.

    Travis N of Hampton Posted on 19 May 2009 10:23am
  • Not surprised Honda didn't make the list. I found Honda to be over rated and not worth the hype. Honda is over priced and expencive to maintain. In fact they have to be serviced after 1,000 kms and then every 10,000 km or 6 months to keep the warranty valid. the dealer (WestPoint) didn't mention this till after i signed the contract and of course wouldn't let me out of the contract after just 1 day. Given these sales tactics, not surprised Honda didn't rate a mention in this story. Given my time again, i think i would have purchased a Mazda or Hyundai

    mark of brisbane Posted on 14 May 2009 9:38am
  • So it is true, in an economic down turn alcohol consumption increases. Why else would consumers be buying so many Hyundai’s?

    Mark of Alexandria NSW Posted on 13 May 2009 11:31pm
  • With all the economic doom and gloom,I guess it's a big 'Yay' for Hyundai ...

    Darth Stig of Melbourne Posted on 12 May 2009 2:20pm
Read all 4 comments

Add your comment on this story

Indicates required

We welcome your comments on this story. Comments are submitted for possible publication on the condition that they may be edited. Please provide your full name. We also require a working email address - not for publication, but for verification. The location field is optional.

Cars for sale

Sponsored Links