Family car buyers helped the Australian motor vehicle market continue its record run in July, according to VFACTS figures from the Federal Chamber of Automotive Industries (FCAI) which showed that a record 86,291 cars, trucks and buses were sold in July – up 11.3% or 8,729 vehicles year on year.
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While most segments of the market enjoyed growth, the strongest additional sales volume occurred in the family-oriented segments of large cars, medium cars and compact SUVs.
FCAI chief executive Andrew McKellar said sales growth in 2007 was more widely spread amongst the segments.
“In 2006 the dynamics of the automotive market were dominated by small and light car sales but this year the sales action has been more broadly based – and the July results reinforce that trend,” said McKellar.
Large car sales rose 18.6% or 1,945 vehicles, Medium car sales increased 21.7% or 1,323 and compact SUV sales were up 23.7% or 1,468 units.
In comparison the largest single segment of the motor vehicle market – small cars – rose just 3.9% or 396 vehicles in July.
So far this year the market is up 8.9% to 610,667 vehicles and the FCAI is forecasting record calendar year sales of over 1m.
McKellar said that, while the continued buoyancy in vehicle sales is pleasing, there is a slight note of caution about emerging economic challenges in the months ahead.
“While the overall strength of the market in July is a tremendous result and we are on track for record annual sales, we shouldn’t take the strength of the motor vehicle market for granted,” he said.
“In particular, there is nothing in these sales figures that in any way supports the case for an interest rate increase in the coming months.
“There is no evidence of excess demand in the motor vehicle market. Supply has responded strongly to meet consumer demand, competition is intense and vehicle affordability is at record levels.”
Toyota was the best-selling brand in July with 19,047, ahead of Holden (12,343) and Ford (9,006).
Year-to-date Toyota leads with 22.2% share of the market ahead of Holden (14.5%) and Ford (10.4%).
Mazda (7.5%), Mitsubishi (6.4), Nissan (6.0) and Honda (6.0) have all gained market share over the same period of last year.
