Dealers’ optimism grows across the ditch

New-car sales in Australia are starting to show positive signs of growth after the financial impact of Covid-19 led to sales dropping by 13.7 per cent in 2020 when compared to the previous year.

There were 916,968 vehicles sold across the ditch last year, down from 1,062,867 units, according to the latest figures from the Federal Chamber of Automotive Industries (FCAI).

Despite the drop, dealers saw encouraging levels of new-vehicle trade in the final months of the year.

In December 2020 there were 95,652 sales, an increase of 13.5 per cent from the 84,239 sold in the same month a year earlier. It followed a similar upturn in November, when sales of 95,205 vehicles marked a 12.4 per cent from 2019.

In the annual figures, SUVs increased their domination of the market and accounted for 49.6 per cent of sales, up from 45.5 per cent in 2019. A total of 454,701 SUVS were sold in 2020, which was 5.9 per cent fewer than in the previous year.

Light commercial vehicles took a 22.4 per cent chunk of the action and passenger vehicles 24.2 per cent, down from 29.7 per cent in 2019.

The top marques for the year were Toyota, with 204,801 units for 22.3 per cent of the market, Mazda on 85,640 for 9.3 per cent, and Hyundai with 64,807 for 7.1 per cent. Ford and Mitsubishi completed the top five.

The Toyota Hilux, pictured, was the number-one seller in 2020 after securing 45,176 sales. It was followed by the Ford Ranger on 40,973, then a trio of Toyotas – the RAV4 with 38,537 units, the Corolla on 25,142 and Landcruiser with 38,537.

Of the top 10 vehicles in 2020, seven were either SUVs or light commercials.

Tony Weber, chief executive of the FCAI, says signs of recovery in the new-vehicle market were welcome following the health and economic crisis caused by Covid-19.

“Along with the rest of Australia, automotive brands and their dealer networks have found the last 12 months an extremely challenging period,” he explains.

“The automotive industry in Australia accounts for more than 60,000 employees, with over 4,000 dealerships across the country.  The contribution made by these businesses is critically important to the economic wellbeing of communities across Australia.

“It is therefore with great relief that the industry, along with the general economy, is finally noting some positive signs within the market.”