Sales dip ‘relentless’
The Motor Industry Association (MIA) says there was a “relentless dip” in new vehicle registrations last month, perpetuating an ongoing decline for the sector.
“While light commercial sales remained steady and heavy vehicle sales saw an uptick, the light passenger segment continues to be hit hardest by the prevailing economic recession,” says Aimee Wiley, chief executive.
“The distressing trend of falling registrations has persisted for the year's first five months, underscoring the sector’s struggle.”
The MIA’s figures show registrations of light passenger vehicles last month were 33.4 per cent lower than in the same month of 2023 and the year-to-date total is down 22 per cent.
There were 10,186 new-vehicle registrations overall in May, with the number down 23.7 per cent or 3,168 units from a year ago. The figure also represented a drop of 23.6 per cent or 3,151 units when compared with May 2022’s tally.
On a year-to-date basis, the MIA reports the market is 13.3 per cent or 8,198 units lower than at the same stage of 2023.
As for motive power in May, battery electric vehicles (BEVs) claimed a 4.4 per cent market share with 444 registrations.
Plug-in hybrids (PHEVs) secured 1.7 per cent with 177 sales, hybrids clocked up 2,150 registrations for 21.1 per cent, and vehicles with internal combustion engines accounted for 72.8 per cent of the market with 7,415 units.
Tesla dominated the BEV sector in May after its Model Y and Model 3 sold 44 and 32 units respectively. Completing the top five was Hyundai’s Ioniq 5 and the Volvo EX30, both with 24 registrations, and BYD’s Atto 3 on 21.
Toyota had the top two performers in the mild hybrid space, with its RAV4 on 760 units and the Highlander on 121. Suzuki’s Swift and the Toyota Corolla were equal third with 93 sales, followed by the Toyota Corolla Cross on 83.
Last month’s leading segments were pick-up/chassis cab on 25.6 per cent, medium SUVs with 20.9 per cent and compact SUVs on 20.5 per cent.
‘Dealers at risk’
Wiley told the NZ Herald that some dealers risk going out of business as the sales slump continues and MIA members have told her the situation is “even more daunting than the peak of the Global Financial Crisis”.
She says industry consolidation is a concern at present and noted several dealerships have closed in recent months
“If the current weak demand persists, as projected by industry experts, government, and key economists for the rest of 2024, more closures are, unfortunately, likely,” Wiley told the NZ Herald.
“While we all hope for a revival in the light passenger segment, the government’s forecast of subdued economic conditions in the near term suggests a challenging Q3 and Q4 ahead for the industry.”
She adds that besides economic recessionary headwinds, the industry has also been hit by government policy changes such as the clean car discount’s axeing at the end of 2023 and the introduction of road-user charges for EVs and PHEVs in April.
As a result, consumer demand for EVs has dropped and interest has shifted back towards hybrid and ICE vehicles.
Wiley explains importers are also trying to meet the government’s clean car standard targets, which adds to the challenges they face.
“Aligning demand and supply and remaining commercially viable is increasingly complex,” says Wiley. “It’s probably tougher right now for the new [vehicle] industry than ever before.”
