New commercial vehicle sales hit a record for April

New Zealand sales of new commercial vehicles hit a record for April amid strong demand from tradespeople and farmers.

April registrations for new commercial vehicles rose 6 percent to 2,915, the highest level for the month on record, according to the Lower Hutt-based Motor Industry Association. Sales for the first four months of this year are 14 percent ahead of the same period last year and the strongest for the period on record, the MIA said.

New Zealand's economy is growing at about a 3 percent annual rate, helped by low interest rates, high net migration and construction activity. That is helping sales of new vehicles, which rose to a record last year.

"When we have a strong economy and businesses are doing okay, they replace their plant," said MIA chief executive David Crawford. "In Christchurch and in Auckland in particular, when your builders, your plumbers, your bricklayers, your electricians etc are doing well, they will buy their utes and their vans for their trade."

The top three best-selling models for April were all light commercial vehicles - the Ford Ranger, Toyota Hilux and Nissan Navara.

More utes are also now being sold as dual purpose commercial and family vehicles as the fitouts become more "carlike", Crawford said.

"They are being used for a mixture of commercial during the day and family during the nights and weekends."

A stronger New Zealand dollar, particularly against the Aussie, euro and yen, is helping lower the cost of new vehicles in local currency terms, Crawford said. Prices are also weakening ahead of the release of new models.

Increased sales and promotional activity during April and May ahead of the June agricultural fieldays is also stoking sales of commercial vehicles to the agricultural and rural market.

Still, Crawford said sales to the agricultural sector may weaken later in the year after Fonterra Cooperative Group lowered its payout to dairy farmers to reflect declining global prices.

Meanwhile, sales of new passenger vehicles in April rose 3.6 percent to a 26-year high for the month of 6,375. The Toyota Corolla was the top selling passenger vehicle for the month. Sales in the first four months of the year are 5.2 percent ahead of the year earlier period.

In the first four months of this year, total new passenger and commercial vehicle sales are 7 percent ahead of last year at 42,545.

New vehicle sales hit a record 127,179 last year, beating the previous record of 123,247 from 1984, and ahead of the 113,294 recorded for 2013.

(BusinessDesk)