NZ new car sales post monthly record in June

Motor Industry Association chief executive David Crawford attributes a range of factors, including Fieldays, for the record

New Zealand's monthly new car sales rose to a record in June as the ongoing themes of cheap finance and an expanding population were given a boost by the recent Fieldays event, where resurgent rural confidence spurred farmers to buy commercial vehicles.

Registrations of new vehicles climbed 17 percent to 15,985 in June from the same month a year earlier, eclipsing the previous monthly record in October 2016 when 14,709 cars were registered, the Motor Industry Association said in a statement. Of that, passenger car sales rose 11 percent to 10,181 and commercial vehicles surged 29 percent to 5,804 with strong demand at Fieldays.

"While the 2017 Agricultural Fieldays held at the beginning of June has boosted the volume of new vehicle sales for the month of June, low interest rates, strong net immigration, strong New Zealand currency and a healthy tourism market continue to underpin the sales of new vehicles," MIA chief executive David Crawford said.

New Zealand's new car market has been a pillar of strength in the economy over the past three years as sales records have regularly been beaten in an environment where employers have been able to cater to the expanding population, low interest rates have made it easier to finance new vehicles, and a strong New Zealand dollar has lowered the price for imports.

Government figures show vehicles, parts and accessories were the country's biggest imported commodity, rising 16 percent to $8.26 billion in the 12 months ended May 31.

The MIA figures show Toyota remained the market leader with a 21 percent share of new cars sold in June, followed by Ford with 11 percent and Holden at 8 percent.

Year-to-date sales climbed 15 percent to 79,131. Of that, Toyota held the biggest share at 17 percent, while Ford had 11 percent and Holden had 9 percent.

The strong car market has been a boon to the auto companies which have generated bigger revenue. Financial statements filed with the Companies Office show Toyota New Zealand boosted revenue 8.6 percent to $1.18 billion in the year ended March 31 and widened gross margins to 10 percent from 8.9 percent a year earlier, while Ford Motor Co's sales jumped 18 percent to $640.8 million in calendar 2016 with gross margins expanding to 6.5 percent from 5.1 percent.

Third-placed Holden New Zealand's revenue increased 7.8 percent to $572.7 million in calendar 2016, although its gross margins shrank to 7.9 percent from 8.5 percent

(BusinessDesk)


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Its going to be very interesting in a period not to far away when electrek vehicles are priced the same as ice vehicles,and what happens with peoples monies tied up in very expensive ice vehicles that have no value and which nobody wants, ie scrap value only.?

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Gary, you presuppose that all people will want to travel in electric vehicles - that's a monumental leap. Indeed, some will, but there will be just as many people who have no interest in pretending to be the Jetsons - some of us love cars not simply because they are a means of getting from A to B, but for what they are and the joy (and aural pleasure) of driving.

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This is good economic news no doubt. But shouldn't the government be building more roads if there are more vehicles? Seems logical or else the roads will only get fuller and more congested, it's pretty simple logistics.

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There are also cars coming off the road as they reach end of life or are crash damaged so it isn't a matter of 15k more cars on the roads this month.

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Errr - hello anonymous - what is it that you think they are doing all along the Southern Motorway and that small tunnelling project over Waterview way?
Admittedly, this is definitely catch up and there is much more to be done, but please - look around you and give some credit where it is due - the Government does have an infrastructure investment programme. Unfortunately we are all having to cope with a scarcity of construction resource. These types of projects cannot simply be delivered by magic and inevitably involve a period of pain in their gestation phase.

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And don't forget the strident opposition from the Luddites and their open-mouthed wowser allies who don't want roads but cycle ways and walkways and trains (on lines the don't exist), but not an inch of extra tar seal anywhere. Like you can walk or cycle from Albany to Pakuranga, or Massey to Glendowie. It's just ludicrous. You might as well suggest to the civil servants in Waikanae that they cycle in each morning to their jobs in Wellington.

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Of course those consumption numbers are positive related to net immigration and economy growth.

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With results such as these, how long will it before the Left in this country starts claiming that the children who live in families that cannot afford to buy a new car are children who are living in poverty? Or, that it is unfair on those famalies that cannot afford to buy a new car and the Government should be doing something about it in the name of fighting inequality and redistributing wealth i.e., subsidising the cost of a new car.

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Err...so if we're doing Silly Songs with Steve today, how long will it be till the Right in this country starts claiming that we'll all be better off if we get rid of all regulation in road and vehicle use, and that it should be entirely up to each of us and our free market to decide what side of the road we drive on, what speed we wish to drive etc...but somehow also should things go south we should be able to socialise our losses in the best tradition.

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Before everyone gets too excited, much of the growth is rental cars to service the growing tourism market. A great story in itself, but its not just about immigration and internal growth.

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