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Events conspire to cut NZ vehicle sales

Big hit: The Suzuki Swift reigned supreme in the New Zealand sales race in April.

Easter, quakes and Aussie wharf action make it hard for NZ car industry in April

6 May 2011

By JACQUI MADELIN in NEW ZEALAND

THE Easter holiday, supply restraints after the Japanese earthquake and tsunami, plus industrial action on Australian wharfs combined to inhibit New Zealand April new-vehicles sales to 5610 units, down 1.4 per cent over the same month last year.

Passenger car sales fell 7.1 per cent, while commercials were up by 22.6 per cent. Used import sales fell 12.1 per cent to 6386.

Motor Industry Association CEO Perry Kerr said the supply situation was changing daily as the Japanese motor industry took positive action to address the component shortages affecting production in Japan and elsewhere.

Sales results across the brands were mixed, with market leader Toyota’s sales falling 17.1 per cent, to 894 vehicles, cutting its April share to 15.9 per cent, but still ahead of Ford on 12.4 per cent.

The hottest-selling car for April was Suzuki’s new Swift (248), followed by the Toyota HiLux (210) and Ford Ranger (207), with Toyota’s Corolla fourth on 149, though it retains top spot year to date.

Toyota NZ chief executive Alistair Davis said Toyota had cut its marketing expenditure to offset the expected supply shortage.

80 center imageBest sellers: Ford Ranger, Toyota HiLux, Toyota Corolla.

“The situation is still fluid and varies by model, country and plant,” he said. “Some components – electronic, paint pigments – are taking time and I suspect it’ll be late in the year before everything is available and on track again.”

Ford took second spot with 697 sales, up 6.3 per cent despite delayed arrival of a ship carrying Ranger and Fiesta due to the wharf dispute.

Ford NZ managing director Trevor Auger said: “We entered the month with good light commercial stock compared with last year and that’s the segment which grew significantly. Our light commercial volume was up 80-odd units on April last year.”

Hyundai climbed to third place with 491 sales, up 11.1 per cent, while Mazda sold 438, up 3.7 per cent.

Holden’s dramatic fall to 393 sales was sparked largely by late shipment, says new NZ managing director Jeff Murray, taking over from the outgoing Simon Carr last week.

“It was a combination of the plant being a little behind schedule and wharf strikes adding time to loading the vehicles,” Mr Murray said. “But we expect to turn this round with sales volumes in May.”

Suzuki sold 371, up 4.8 per cent, Mitsubishi 310, up 6.2 per cent, and Nissan 265, down 24.3 per cent.

Nissan NZ managing director John Manley said shipments from the UK, Spain and Thailand were all stuck in Melbourne because of the dockside industrial action.

“That caused us a large degree of consternation,” he said, adding that he expected the stock to arrive this month.

Mr Manley also said sales in the earthquake-hit Christchurch were dropping, with Nissan’s Christchurch dealer confirming to him that while more sales will stem from the redevelopment process, “there’s a feeling of frustration as start-up dates are being delayed”.

Mr Manley said decisions and insurance payouts could take six months. “Apply that to homes, businesses and everything else, and sales could go into a holding pattern,” he said.

Honda sold 245 vehicles, down 4.7 per cent, and VW rose 49.1 per cent to 243 sales, rounding out the top 10.

VW NZ general manager Dean Sheed said lower entry prices had drawn new buyers for incremental growth.

Kia sits below the top 10 despite a 22.9 per cent lift in sales, to 172, but NZ general manager Todd McDonald anticipates further rises. He said the company was holding heavy back orders for Sportage, but expected supply shortages for Optima to ease.

As for the small players, many benefited from the continued slow return of the private buyer, also noted by Ford, Toyota and Honda. The most dramatic increase was logged by Renault, returning to the market with registrations boosted 1500 per cent to 16 – more than its total 2010 sales.

Renault NZ general manager Steve Kenchington said several of those were dealer demos. “We need to back it up with another strong month.”

But not everyone’s feeling optimistic. Ford NZ’s Mr Auger said: “I don’t think we fully understand the magnitude of the situation in Japan regarding availability in the medium term.”
NZ top 10 makesApril 2011:
RankMakeSales%Share
1Toyota89415.9
2Ford69712.4
3Hyundai4918.7
4Mazda4387.8
5Holden3937.0
6Suzuki3716.6
7Mitsubishi3105.5
8Nissan2654.7
9Honda2454.4
10Volkswagen2434.1

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