New Zealand vehicle sales get lift off

NEW Zealand remains under a state of national emergency after February’s devastating earthquake in Christchurch, but that hasn’t dented new-vehicle sales which at 22,187, are up 14.7 per cent for the first quarter over the same period last year.

New-car registrations rose 12 per cent year to date, with commercials up 24 per cent in part due to Christchurch-driven demand in March.

Used import sales have fallen by 3.8 per cent to 21,279.

Motor Industry Association CEO Perry Kerr said the year’s strong start might still be tempered by the unknown effects of the Christchurch earthquake and the devastation in Japan.

“The industry in Japan is still assessing the consequences of the damage to the numerous component suppliers as well as the effect on production from plant shutdowns,” he said.

Mr Kerr said that stock – which hit an all-time low in April 2010 – has since increased, with distributors now holding three months’ supply.

“However, in all likelihood future supplies of new vehicles from Japan, Thailand and Australia will be affected. This will lead to shortages.” Mr Kerr said buyers who had done their research were prepared to wait.

Toyota led the NZ market in the first quarter with 4937 sales for 22.5 per cent share, a sales rise of 27.5 per cent on last year.

General manager sales and operations Steve Prangnell sees strong retail demand, greater business confidence, and, moving into April, buyers aiming to avoid earthquake-driven shortages.

Mr Prangnell said the Christchurch quake had so far had a positive effect on sales.

From top: Honda Insight, Honda Jazz, Toyota Corolla, Suzuki Swift.



“Between Hyundai and ourselves we’ve benefited from the all of government procurement tender, with Christchurch seeing a lift in demand from infrastructure companies like EQC [Earthquake Commission] and other companies with government contracts,” he said.

“But it’s hard to supply to that as we haven’t forecast it and it’s mainly commercials – EQC wanted Corollas but infrastructure needs light trucks or vans.”

Second-placed Ford’s 2082 sales represent a rise of 10.2 per cent, ahead of Holden on 2006 sales, down 4.3.

Like many brands, Ford has a Christchurch dealer out of action, although it has partially emerged from the reduced cordon around the city’s ‘red zone’ and hopes to reopen on a limited basis next month.

Ford managing director Trevor Auger said: “Being the only [functional] building on the block might be a problem but the dealer’s surprised by how much traffic there’s been – a lot more than expected.” Mr Auger said dealers were reporting a strong private market late in the month, especially in Auckland.

Fourth-placed Hyundai sold 1742 new vehicles, up 39.8 per cent. Chief operating officer Tom Ruddenklau said government contract business was starting to come through, “though my sense is it’s still not where it will be in terms of overall volume”.

Mr Ruddenklau reported a strong resurgence in private sales.

Mazda sits fifth for the month on 1499 sales, down 7.6 per cent, with Nissan on 1390, up 10.2.

Mazda managing director Andrew Clearwater also noted a return by private buyers and strong sales in Christchurch despite his dealer operating out of temporary facilities. The dealership is inside the red zone, and Mr Clearwater says it could be six months before it is allowed back.

Suzuki, in seventh place, sold 1350 cars (up 10.7 per cent), while Mitsubishi sold 1293 (up 12.3).

Volkswagen had a good quarter on 891 sales, up 40.8, with Honda rounding out the top 10 at 869 sales (up 31.1 per cent).

Honda NZ managing director Graeme Seymour credits Insight and Jazz for the result.

He also reported a strong month from his Christchurch dealer, despite the fact that for part of the month it was inside the cordoned off area.

“The sales are coming from normal business and not as you might suspect replacement cars from the earthquake,” he said.

With vehicles still inside the cordoned-off area, full replacement numbers may not be known for some time.

The returning private buyer benefitted niche brands badly hit by the recession but showing a resurgence in March, with Citroen (81 sales) up 125 per cent for the quarter, Dodge (67) up 76.3 per cent and Volvo (69) up 38 per cent.

Christchurch-driven demand for light commercials underpinned March’s top-sellers, with Toyota HiLux first on 514 registrations, Corolla second on 355, then Suzuki Swift (307), Nissan Navara (270) and Toyota’s Yaris rounding out the top five closely followed by Ford’s Ranger.

NZ top 10 makes March2011:
Rank	Make	Sales	%Share
1	Toyota	1895	22.9%
2	Ford	698	8.5%
3	Holden	679	8.2%
4	Hyundai	614	7.4%
5	Nissan	582	7.1%
6	Mitsubishi	567	6.9%
7	Mazda	537	6.5%
8	Suzuki	447	5.4%
9	Volkswagen	354	4.3%
10	Honda	341	4.1%