Record car sales deflate FBT claims
The figures, to be released by the Federal Chamber of Automotive Industries on Monday, show growth compared with July last year of about 4 per cent, and come only two weeks after predictions the new car market would slump between 10 per cent and 30 per cent on the back of the controversial government announcement to scrap the 20 per cent flat rate for calculating FBT.
Chamber chief executive Tony Weber said the expectation was for a "bumper month" in July on the back of the all-time record monthly sales posted in June.
"I haven't seen the figures but we were expecting to be in line with June that the [overall sales] number would be well in the 90s [thousands] and anything below that would be a disappointment," Weber said.
"In July a lot of the fleet sales, for instance, would have been locked in. From what we hear from the grassroots about people coming through the showrooms , activity is down and we expect that to be reflected in the sales [longer term]."
His comments were reinforced by industry insiders quick to point out that any drop in sales would be delayed as orders began to drop.
"There would be people who, post the announcement, have cancelled their orders," said one executive who asked not to be named. "So there can be a long lead time between orders and deliveries. August and September will be more representative of the drop in sales."
Among the modest sales growth was some rare good news for some locally produced cars.
Holden's Commodore achieved its best sales result in July since March last year, reversing a long-running sales slump. Much of the growth was due to the arrival of the new VF version of the Commodore, which experienced its first full month in dealerships.
Following months of hype and marketing, the new VF Commodore accounted for about 2900 sales, representing a near 20 per cent increase in sales compared with July last year.
But it was small cars that topped the sales charts - again. Almost 4000 Toyota Corollas were sold in July, eclipsing the second-placed Mazda3, with about 3500 sales. Utes also performed strongly, with the Toyota HiLux muscling out the Commodore for third position.
Sales of sports utility vehicles, which have been running hot for more than a decade, were soft in July with some brands experiencing significant declines. Overall, the SUV segment experienced modest sales growth, but well below the 4 per cent achieved across the entire new-vehicle market.
Top 10 sellers in July
Toyota Corolla
Mazda3
Toyota HiLux
Holden Commodore
Holden Cruze
Hyundai i30
Toyota Camry
Ford Ranger
Mitsubishi Triton
Holden Colorado
Frequently Asked Questions about this Article…
About 88,000 new cars were sold in July, setting a sales record for that month and representing roughly 4% growth compared with July last year, according to figures obtained by Fairfax and to be released by the Federal Chamber of Automotive Industries (FCAI).
Despite predictions of a slump after the controversial government announcement to scrap the 20% flat rate used to calculate fringe benefits tax (FBT), July still posted modest growth. Industry commentators said any negative effect may be delayed because many orders had already been placed or locked in.
Industry insiders told the article that sales declines could be delayed by the lag between orders and deliveries — with cancellations starting to show up later — so August and September were expected to be more representative of any drop in sales.
Small cars topped the charts: the Toyota Corolla was the top seller with almost 4,000 sales, followed by the Mazda3 with about 3,500. The top-10 list also included Toyota HiLux, Holden Commodore, Holden Cruze, Hyundai i30, Toyota Camry, Ford Ranger, Mitsubishi Triton and Holden Colorado.
Holden's Commodore achieved its best July result since March of the previous year, reversing a long-running slump. Much of the growth came from the arrival of the new VF Commodore, which had its first full month in dealerships and accounted for about 2,900 sales — a near 20% increase compared with July last year.
Small cars again dominated July's sales, led by the Toyota Corolla and Mazda3. Utes also performed strongly — the Toyota HiLux pushed the Commodore down to third — showing continued demand in the ute segment.
SUV sales were soft in July, with some brands experiencing significant declines. Overall the SUV segment recorded only modest growth, and that growth was well below the roughly 4% increase seen across the entire new-vehicle market.
Investors following the auto sector may want to watch August and September sales for any delayed impact from the FBT change, monitor order cancellation reports and fleet-sales trends, and track how new-model launches (like the VF Commodore) affect month-to-month company sales performance.
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