Fewer End of Financial Year deals, high interest rates and continued stock shortages kept new-car sales in decline last month – but brands such as Toyota, Hyundai and Kia have reasons to celebrate.
Sales of new motor vehicles in Australia continued their downwards trajectory in June – traditionally one of the biggest new-car sales months of the year – as ongoing stock shortages and long wait times nixed the typical wide array of End of Financial Year (EOFY) deals.
VFACTS new-car sales figures published today by the Federal Chamber of Automotive Industries (FCAI) show 99,974 new passenger cars, SUVs and commercial vehicles as sold in June 2022, down 9.7 per cent on the prior year.
The result is down 21.5 per cent on the five-year average of 127,300 vehicles for the same month before the pandemic, and 25.5 per cent down on the all-time June sales record of 134,171, set in 2017.
Stock shortages continue to be behind to the market slowdowns, according to car brands, with a mix of strong demand, parts shortages and factory pauses contributing to wait times on popular models beyond 12 months.
The lack of stock has seen fewer End of Financial Year (EOFY) deals available than before the pandemic, when showroom floors overstocked with cars saw dealers willing to offer more significant discounts to help sell stock.
Interest rates are also on the rise, contributing to the sales decline – with dealers reporting lower foot traffic in June than in May, despite the former traditionally being a busier month.
June’s result means that whereas in May the market was ahead of where it was before the pandemic, it is now behind, with the 537,858 vehicles reported as sold so far this year (year to date) down 3.0 per cent on 2019 results.
The market is well on track to report more than one million vehicles as sold this year – as has been the case 11 of the last 12 years – though it appears unlikely to break the all-time record of 1,189,116 sales, set in 2017.
The six-month sales result of 537,858 sales in 2022 is down 11.2 per cent on the recent January to June record of 605,522, set in 2018.
To the end of June, sales were down across all buyer types – 1.0 per cent among private buyers, 12.8 per cent among business buyers, 1.5 per cent across governments, and 4.6 per cent among rental fleets.
In a media statement, chief of the Federal Federal Chamber of Automotive Industries, Tony Weber, said: “Globally, car makers are continuing to suffer from plant shutdowns. In Europe we have component supply heavily impacted by the conflict in Ukraine. Microprocessors continue to be in short supply and global shipping remains unpredictable.
“While demand for new cars remains strong in Australia, it is unlikely we will see supply chain issues resolve in the near future”.
Japan’s Toyota continued to dominate, reporting 22,516 vehicles as sold in June, or more than one in every five cars sold (22.6 per cent market share – something it has held for about most of the last 24 months.
Toyota’s half-year total of 121,377 is its second best on record, behind only its record year of 2008 – a remarkable result in the face of supply challenges and regular factory shutdowns.
Mirroring their success in May, Kia and Hyundai were the second and third best-selling brands again last months, with 8480 and 8259 sales – up 7.5 and 12.3 per cent respectively compared to June 2021.
Long-time favourite among private buyers, Mazda, followed in fourth with 6245 sales (down a significant 48.9 per cent year on year) – with Mitsubishi (5846) and Ford (4972) behind.
As warned a month ago, Chinese brand MG was hit by stock shortages for the first time in June, reporting 4403 vehicles as sold in June – though it retained its seventh-place finish, its long-time best result.
While MG sales increased by 2.3 per cent last month compared to June 2021 – contrasting the sales declines experienced by some other brands – the Chinese brand has posted year-on-year sales increases of about 20 to 25 per cent each month in 2022.
German brand Volkswagen was again outside of the top 10 – for the fifth time this year, due to stock shortages – while among luxury brands, Mercedes-Benz remained the top performer in June, reporting 3909 cars as sold, in eighth place.
Retaining the top spot on the best-selling models list is the Toyota HiLux ute, with 7582 examples reported as sold – a significant 40 per cent increase over last year’s result, and believed to represent an all-time monthly record.
The Hyundai Tucson recorded a surprise second-placed finish, with 2840 sales, up 89.8 per cent – with perennial top seller, the Toyota RAV4, in fifth place with 2586 sales (up 3.4 per cent year on year).
Ford reported 2772 Ranger utes as sold last month, down 54 per cent year on year – though sales are expected to pick up next month, as the first examples of the new-generation Ranger are delivered to customers.
The Toyota Corolla and Hyundai i30 hatchbacks continue to be the only traditional passenger cars in the top 10, with sales of the category down 21 per cent between June 2022 and June 2021, compared to 2.3 per cent for SUVs over the same period.
The Kia Sportage was another surprise entrant into the Top 10, with 2044 sales, up 136.8 per cent compared to the same month last year (though this was affected by a model changeover in 2021). The MG HS broke into the Top 10, with 1795 sales.
Electric vehicle specialist Tesla reported 172 vehicles as sold in Australia last month, as it suffers the after-effects of lockdowns in China earlier this year that halted production of its sole vehicle, the Model 3 sedan.
However, sales are expected to pick up towards the end of the year, as the first batch of Model Y SUVs arrive from August – and production of Model 3s kicks back into full swing.
As a whole, sales of electric vehicles are up 83 per cent compared to the same month last year or up 127 per cent compared to the first half of last year – both excluding Tesla, which did not report its sales figures to the FCAI until March 2022.
Including Tesla and 9680 electric vehicles have been sold so far this year, up 337 per cent to account for 1.8 per cent of the new-car market (vs 0.4 per cent in the first half of 2021).
Plug-in hybrid sales have increased 104.2 per cent so far this year compared to the same period in 2021, while conventional hybrids – led by Toyota – are up 12 per cent.
Data below supplied by the Federal Chamber of Automotive Industries, and compiled by Alex Misoyannis.
|Rank||Model||Volume June 2022||Change year-on-year|
|1||Toyota HiLux||7582||up 40.1 per cent|
|2||Hyundai Tucson||2840||up 89.8 per cent|
|3||Ford Ranger||2802||down 53.7 per cent|
|4||Toyota Corolla||2605||up 19.8 per cent|
|5||Toyota RAV4||2586||up 3.4 per cent|
|6||Isuzu D-Max||2383||down 24.8 per cent|
|7||Kia Sportage||2044||up 136.8 per cent|
|8||Mitsubishi Triton||2014||down 10.1 per cent|
|9||Hyundai i30||1801||down 22.7 per cent|
|10||MG HS||1795||up 79 per cent|
TOP 10 CAR BRANDS IN June 2022
|Rank||Brand||Volume June 2022||Change year-on-year|
|1||Toyota||22,561||up 7.0 per cent|
|2||Kia||8480||up 7.5 per cent|
|3||Hyundai||8259||up 12.3 per cent|
|4||Mazda||6245||down 48.9 per cent|
|5||Mitsubishi||5846||up 3.6 per cent|
|6||Ford||4972||down 41.2 per cent|
|7||MG||4403||up 2.3 per cent|
|8||Mercedes-Benz Cars||3909||down 17.4 per cent|
|9||Subaru||3575||up 18.3 per cent|
|10||Isuzu Ute||3457||down 12.8 per cent|
Passenger cars: Top Three in each segment in June 2022
|Micro||Kia Picanto (69)||Mitsubishi Mirage (52)||Fiat/Abarth 500 (32)|
|Light < $25k||MG 3 (1206)||Suzuki Baleno (946)||Kia Rio (569)|
|Light > $25k||Mini Hatch (193)||Audi A1 (18)||Citroen C3 (7)|
|Small < $40k||Toyota Corolla (2605)||Hyundai i30 (1801)||Kia Cerato (1597)|
|Small > $40k||Mercedes-Benz A-Class (364)||Audi A3 (270)||BMW 2 Series Gran Coupe (153)|
|Medium < $60k||Toyota Camry (558)||Volkswagen Passat (75)||Skoda Octavia (45)|
|Medium > $60k||Mercedes-Benz C-Class (456)||Mercedes-Benz CLA (214)||BMW 3 Series (203)|
|Large < $70k||Kia Stinger (312)||Skoda Superb (95)|
|Large > $70k||Audi A6 (53)||Porsche Taycan (47)||BMW 5 Series (39)|
|Upper Large < $100k||Chrysler 300 (7)|
|Upper Large > $100k||Mercedes-Benz S-Class (16)||BMW 7 Series (8)||BMW 8 Series Gran Coupe (4)|
|People Movers||Kia Carnival (1101)||Hyundai Staria (86)||Volkswagen Multivan (56)|
|Sports < $80k||Ford Mustang (187)||Subaru BRZ (61)||Mazda MX-5 (38)|
|Sports > $80k||BMW 4 Series coupe/convertible (90)||Mercedes-Benz C-Class coupe/convertible (88)||Mercedes-Benz E-Class coupe/convertible (26)|
|Sports > $200k||Porsche 911 (129)||Ferrari range (20)||Aston Martin coupe/convertible (14)|
SUVs: Top Three in each segment in June 2022
|Light SUV||Mazda CX-3 (1201)||Kia Stonic (1071)||Toyota Yaris Cross (710)|
|Small SUV < $40k||MG ZS (1402)||Hyundai Kona (1210)||Kia Seltos (1010)|
|Small SUV > $40k||Mercedes-Benz GLA (554)||Audi Q3 (542)||Volvo XC40 (494)|
|Medium SUV < $60k||Hyundai Tucson (2840)||Toyota RAV4 (2586)||Kia Sportage (2044)|
|Medium SUV > $60k||Mercedes-Benz GLC (1101)||BMW X3 (842)||Audi Q5 (367)|
|Large SUV < $70k||Toyota Kluger (1655)||Toyota Prado (1578)||Subaru Outback (1264)|
|Large SUV > $70k||Mercedes-Benz GLE (478)||BMW X5 (345)||Volvo XC90 (313)|
|Upper Large SUV < $100k||Toyota LandCruiser wagon (1518)||Nissan Patrol wagon (391)|
|Upper Large SUV > $100k||Mercedes-Benz G-Class (161)||BMW X7 (85)||Audi Q8 (78)|
Utes and vans: Top Three in each segment in June 2022
|Vans < 2.5t||Volkswagen Caddy (40)||Peugeot Partner (35)||Renault Kangoo (34)|
|Vans 2.5t-3.5t||Toyota HiAce van (759)||Hyundai Staria Load (593)||LDV G10/G10+ (261)|
|4×2 Utes||Toyota HiLux (2227)||Isuzu D-Max (430)||Mitsubishi Triton (381)|
|4×4 Utes||Toyota HiLux (5355)||Ford Ranger (2547)||Isuzu D-Max (1953)|
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