In welcoming news for dealers, new car sales have recorded their best result in 11 months in June as consumers continue to return to the showrooms following the easing of COVID-19 restrictions.

According to the figures released by the Federal Chamber of Automotive Industries (FCAI), 110,234 vehicles were sold during the month of June, a decline of 6.4 per cent from the same figure in 2019.

With the month of June generally representing the busiest month of the year for dealers as end of financial year deals drive demand, the extension of the Federal Government’s $150,000 instant asset write-off has seen sales figures exceed expectations.

The result is welcome news for a new car industry struggling to recover from the COVID-19 pandemic which saw sales figures drop by 48.5 per cent in April and 35.3 per cent in May.

The recovery has been predictably led by utes, with three of the top four vehicles sold in June all belonging to this sector, as ute and van sales grew by 8.6 per cent.

The Toyota HiLux stood firm as the nation’s top-selling vehicle, selling 6,537 units, good for a whopping 21.1 per cent increase in sales.

Following the HiLux once again was the Ford Ranger, which sold 5,329 vehicles – up 9.9 per cent – with the Toyota Corolla – 3,008 sales, down 4.1 per cent – separating the top two utes from the fourth-placed Mitsubishi Triton – 2,721 sales, up 1 per cent.

The surging ute market saw RAM Trucks Australia record their best monthly result since arriving in Australia. The US brand recorded 604 sales in June, an increase of 130 per cent.

June also saw BMW break their all-time monthly sales figure, with 3,307 vehicles sold, up 32 per cent on June 2019.

Toyota solidified its position as the most popular brand in Australia despite its overall market share falling from 24.2 per cent in May to 20.7 per cent.

The Japanese brand accounted for 22,867 sales, up 7.9 per cent, with three of its top four selling models all recording increased sales.

Mazda finished the month with 9,420 sales to finish second, ahead of Hyundai (7,737 sales), Ford (7,624) and Mitsubishi (7,419).

Despite the renewed demand for new cars, June represented the 27^th consecutive month of sales decline for the industry, with FCAI chief executive Tony Weber warning that there is still plenty of work to do before new car sales fully recover.

“Stimulus packages from the Federal Government, such as Job Keeper and Job Seeker, have helped to restore some consumer confidence and supported the small bounce back during June,” said Weber.

“However, there’s no doubt that the new vehicle industry in Australia is still under high pressure. We’re not out of the woods yet.”

Australian Automotive Dealer Association (AADA) CEO James Voortman said he was encouraged by the result, but echoed a similar warning.

“This is a good outcome for the industry, but we need to keep some perspective,” said Voortman. “It is still more than 7,500 units down on June 2019 and stands as the 27th month of consecutive decline in sales.”

Top 5 brands for June 2020

1. Toyota | 22,867 | up 7.9 per cent
2. Mazda | 9,420 | 12.8 per cent
3. Hyundai | 7,737 | down 22.6 per cent
4. Ford | 7,624 | up 6.6 per cent
5. Mitsubishi | 7,419 | down 16.6 per cent

Top 5 models for June 2020

1. Toyota HiLux | 6,537 | up 21.1 per cent
2. Ford Ranger | 5,329 | up 9.9 per cent
3. Toyota Corolla | 3,008 | down 4.1 per cent
4. Mitsubishi Triton | 2,721 | up 1 per cent
5. Toyota RAV4 | 2,632 | up 7.5 per cent

Source: Federal Chamber of Automotive Industries

3 July 2020