Suzuki sales ride ‘roller coaster’

Suzuki New Zealand’s automotive general manager is hoping for a smoother ride when it comes to sales in 2024 after admitting to mixed feelings about the demise of the clean car discount (CCD). 

Gary Collins says despite the company maintaining its market share last year, the feebates and government policy had a more significant impact on the market than expected.

“We were on a bit of a roller coaster flipping between CCD rebates applying across much of our fleet to no rebates and a number of penalties,” he explains.  

“So much change in a short period can’t be easy for customers to fully understand. So combined with the impacts of the general election, high cost of living, and low economic confidence, many of our customer went into hiatus.

“We’ve had a period where the programme worked in our favour, and a time when it certainly did not. So there are mixed feelings on the abandonment of the programme.”

Collins, pictured, notes the marque had a strong first half of 2023 and was on track to exceed the more than 8,000 registrations it achieved in the whole of 2022.

“But for Suzuki it truly was a game of two halves and we took a bit of a beating in the second half.

“2022 was our best-selling year ever … [but] with the economic and government factors, it was not realistic that we would achieve this level of sales again last year. So while not where we would ideally want to be, our sales of 6,929 in 2023 was expected.”

The Swift was the brand’s top model, selling 3,922 units, and the S-Cross Hybrid and Jimny also performed well. 

Collins, who was speaking at the launch of the new Jimny five-door model in Queenstown, says last year saw considerable shifts in market share for some of its rivals in the new-vehicle sector.

However, Suzuki has remained a consistent performer and has taken out about five per cent of the market in each of the past three years. It notched 4.7 per cent in 2023 to be the sixth best-selling marque.

The company is looking to improve its position in the hotly contested SUV segment, with the introduction of hybrid powertrains for Vitara and S-Cross models enhancing its line-up.

“With the adjustments in government emission policies, we expect that mild hybrids will be the major sellers in this segment as customers look to reduce their running costs with cost-effective model options,” explains Collins.

“We also see, with a tightened economy, customers that were originally looking at larger SUVs may opt for a smaller, more affordable option.  

“We have experienced it often over the years that as fuel prices rise, many customers downsize to decrease their cost of living.”

He adds that all things taken into consideration, its projected outlook for the first quarter of 2024 is positive and many of its dealers have started the year with improved enquiry and sales levels. 

Import targets

Collins continues that while the CCD has gone, the drive for distributors to import low-emissions vehicles remains with the clean car standard (CCS). 

Targets have reduced for new light vehicles by 11.1g per unit this year, which means an average-weight car has the goal of its carbon dioxide (CO2) emissions being 133.9g per kilometre. “But for a lightweight vehicle under 1,200kg, which is most of our range, the target is 113.6g/km.”

He says this means a Swift GL auto, “one of the most fuel-efficient internal combustion engine [ICE] vehicles on the market, and more efficient than a number of hybrid models”, will incur 8g of penalty or $360 of fees.

“While not ideal, these sorts of values are manageable. The shift in 2025 is where the heat starts to come on.

“The targets shift down another 21.3g/km, while the penalties go up 50 per cent. So that Swift GL auto moves to $1,957 per vehicle,” explains Collins.

“It is important that all distributors have some battery electric vehicle products from 2025 onwards to help offset the penalties incurred on ICE and hybrid models.”

A review of the CCS is being undertaken by the government and he notes the industry will be closely following the outcome of this.

“All brands are very carefully planning their model line-ups, not only for achievement of current CCS targets, but also to build credits for future years.  

“Our model line-up has altered to minimise penalties with the move to hybrid powertrains for Vitara and S-Cross, along with expected improvements in emissions from the new Swift, strengthening our overall emission position.”