New Vehicle Sales Decline Again in November 2019.


December 6, 2019

New Vehicle Sales Decline Again in November.

Steve Sell 6/12/2019

This the 20th month in a row that the number of new vehicles sold has declined.

 

VFACTS record the number of new cars sold and the figures are released released by the Federal Chamber of Automotive Industries (FCAI).

These figures include fleet sales and government purchases.

The latest figures (for November) show that the market for new vehicles has fallen again by 9.8%.

This equates to 84,708 sales for the month and while this may sound good, it is retail sales (the dealerships) that have suffered the biggest drops.

Not only have the number of sales declined, the margin or profit per unit has declined due to increased competition and manufacturers putting pressure on dealerships to increase numbers.

While car dealers in general do generate a lot of sympathy with the general public, we need them to provide support services like service and repairs.

A healthy dealer environment provides competition and the money dealerships generate is usually spent in the community where they are situated.

Dealerships employ a lot of people with a large range of skill sets.

If a dealership is not profitable, they lay of staff and this contributes to unemployment.

Annually the tally sits at 978,628, down 8.2 per cent on 2018’s year to date total.

The figures are the lowest November total since 2008, (the Global Financial Crisis).

The three bestselling brands were Toyota, Mitsubishi and Hyundai.

The top three selling models were the Toyota Hi Lux, Ford Ranger and the Mitsubishi Triton.

Find a large selection of Mitsubishi Triton, Toyota Hi Lux and Ford Rangers on www.wacars.com.au

 

 

 

 

 

 

 

Holden.     Catch it while you can. Disappearing Fast.

Advertising.

Yes, the economy is not as vibrant as it has been, and the new car market has been declining.

The decline is in part due to the lack of spending on quality, well thought out car advertising.

Holden is the poster child for misdirected and confused advertising.

Holden is quickly evaporating as a brand.

A lot of people put this down to Holden not being produced in Australia and while that may be a contributing factor, other imports sell well.

That is, every other brand on the market.

There are no cars manufactured in Australia

In my mind you don’t need to look any further than the confused branding and advertising Holden is doing.

It is not recognisable as Holden, does not identify with Holden or even Australia.

The Holden Arcadia television campaign is confusing to say the least.

I have been present in several different settings and age groups and every person that has viewed the advertisement agrees that it is confusing and not one person identified with or could even guess the message or intent of the advertisement.

The age groups that commented were from 5 years of age to 90 years of age.

The Holden Cruze advertisement is great for showing off a messy kid. What about the car?

The SUV range is a great ad with high production values and more than likely cost a lot of money to produce, but once again people wonder what it is for.

The car should be the hero.

Reduced Advertising Budgets.

Most of the major producers and dealers are spending less on advertising than ever before.

It is no coincidence to see brands that are advertising like MG increasing their market share against the trend. The car is the focus.

Dodge Ram is another improver and once again there is no mistake what the advertisement is about.

The focus is on the product not about trying to be too clever.

A big SUV that can-do things the others can’t.

 Subaru:

Subaru is another brand that is declining rapidly.

Subaru have gone from having the WRX as the hero brand. The car needs be reintroduced as the tyre burning hoon-mobile that can double as a suave and respectable sedan.

The XV, Forester, Liberty and Outback all have market segments with very loyal customers that can be reached with brand appropriate advertising.

Once again, these Market segments need to know what the car is, what it can do and some reassurance that they are making a sensible purchase.

These customers are usually very loyal to the Subaru brand.

 

Results by Brand:

 

Eight of the top 10-selling brands sold less than the previous month.

These brands equal 73 per cent of the market’s total sales.

The Top Twelve Brands for November 2019:

I have included the top 12 manufacturers to illustrate that Holden has fallen well outside the top 10.

1.Toyota (16,954 sales, down 7.2 per cent),

  1. Mitsubishi (6861, down 1.3 per cent)
  2. Hyundai (6821, down 13.3 per cent),
  3. Mazda (6167, down 30.7 per cent),

5, Kia (5141, up 10.7 per cent),

  1. Ford (4966, down 10 per cent),
  2. Nissan (4272, down 19.8 per cent),
  3. Volkswagen (3923, down 16.8 per cent),
  4. Mercedes-Benz (3407, up 39.2 due to new models, availability of product and a loyal base),
  5. Honda (3825, down 12 per cent).
  6. Subaru (3141, down 19.9 per cent)
  7. Holden (2668, down 47.9 per cent, almost half its tally in November 2018). These figures are the worst result for the company in 71 years.

There was some good news amongst the doom and gloom, some brands grew their monthly sales, China’s Haval (174, up 138.4 per cent) MG (866, up 126.1 per cent),

Ram Trucks doubled its tally to 307.

Others that increased sales against the trend were Renault by 45.7 per cent to 1024, Skoda by 30.4 per cent to 618, Lexus by 27.4 per cent to 894, Land Rover by 16.7 per cent to 629, Volvo (passenger cars) by 16.6 per cent to 652, Audi by 11.7 per cent to 1608, and BMW by 5.7 per cent to 1731.

Suzuki increased sales by 5.5 per cent to 1377, Thanks to availability and sales of the Suzuki Baleno. (415, up nearly 83 per cent). Suzuki would have an even better result if it had been able to supply more Jimnys. Suzuki has sold 1270 Jimnys so far this year.

Rolls-Royce, Lamborghini, McLaren, and Porsche sales have also grown against the general trend.

Models:

 

These customers are usually very loyal to the Subaru brand.

 

Results by Brand:

 

Eight of the top 10-selling brands sold less than the previous month.

These brands equal 73 per cent of the market’s total sales.

The Top Twelve Brands for November 2019:

I have included the top 12 manufacturers to illustrate that Holden has fallen well outside the top 10.

1.Toyota (16,954 sales, down 7.2 per cent),

  1. Mitsubishi (6861, down 1.3 per cent)
  2. Hyundai (6821, down 13.3 per cent),
  3. Mazda (6167, down 30.7 per cent),

5, Kia (5141, up 10.7 per cent),

  1. Ford (4966, down 10 per cent),
  2. Nissan (4272, down 19.8 per cent),
  3. Volkswagen (3923, down 16.8 per cent),
  4. Mercedes-Benz (3407, up 39.2 due to new models, availability of product and a loyal base),
  5. Honda (3825, down 12 per cent).
  6. Subaru (3141, down 19.9 per cent)
  7. Holden (2668, down 47.9 per cent, almost half its tally in November 2018). These figures are the worst result for the company in 71 years.

There was some good news amongst the doom and gloom, some brands grew their monthly sales, China’s Haval (174, up 138.4 per cent) MG (866, up 126.1 per cent),

Ram Trucks doubled its tally to 307.

Others that increased sales against the trend were Renault by 45.7 per cent to 1024, Skoda by 30.4 per cent to 618, Lexus by 27.4 per cent to 894, Land Rover by 16.7 per cent to 629, Volvo (passenger cars) by 16.6 per cent to 652, Audi by 11.7 per cent to 1608, and BMW by 5.7 per cent to 1731.

Suzuki increased sales by 5.5 per cent to 1377, Thanks to availability and sales of the Suzuki Baleno. (415, up nearly 83 per cent). Suzuki would have an even better result if it had been able to supply more Jimnys. Suzuki has sold 1270 Jimnys so far this year.

Rolls-Royce, Lamborghini, McLaren, and Porsche sales have also grown against the general trend.

Top Sales By Model:

November 2019  top 20 models:

Toyota Hilux —      3687 (down 21.1 per cent)
Ford Ranger —      3491 (up 0.6 per cent)
Mitsubishi Triton     3123 (up 29.9 per cent)
Hyundai i30 —        2339 (down 1.6 per cent)
Toyota RAV4 —     2316 (up 19.6 per cent)
Toyota Corolla —   2229 (down 16.2 per cent)
Toyota Camry —    2001 (up 54.5 per cent)
Nissan X-Trail —    1882 (down 3.1 per cent)
Mazda CX-5 —       1735 (down 13.2 per cent)
Kia Cerato —          1639 (up 21.3 per cent)
Mitsubishi Outlander — 1523 (up 52.5 per cent)
Hyundai Tucson —  1444 (down 11 per cent)
Isuzu D-Max —        1438 (down 9.4 per cent)
Mazda 3 —              1435 (down 38.7 per cent)
Subaru Forester      1317 (down 6.3 per cent)
Hyundai Kona —     1303 (up 30.2 per cent)
Toyota Prado —      1204 (down 17.8 per cent)
Holden Colorado     1156 (down 15.1 per cent)
Honda CR-V —       1141 (down 1.6 per cent)
Mazda CX-3 —       1107 (down 15 per cent)

Vehicles that experienced an increase in sales November were:

Camry (up 706),

Triton 4×4 (up 595),

Outlander (up 524),

RAV4 up by 380 and this figure would have even been higher if the supply of hybrid vehicles was freed up.

Kona (up 302).

The vehicles that declined the most for the month were the new-generation Mazda 3 (down 907),

Holden Astra (down 829),

Toyota Hi Lux 4×4 (down 794),

Ford Mustang (down 661),

Mazda 2 (down 541), The new model arrives this month).

 

Miscellaneous:

SUVs accounted for 46.7 per cent of the market share.

Business fleet sales were 37,532 Vehicles. (down 4.5 per cent)

Rental cars 6236, (down 6.9 per cent)

Government departments 3232, (down 9.2 per cent).

Private buyers purchased 34,628 (down 14.7 per cent).

 

Hybrid car sales were 3897, up 137 per cent.

Electric and PHEV cars totalled 331 units; this is a big increase but is still only a fraction of the market.