Australian New Car Sales: 2007 Sets New Record

Motoring Channel Staff - 7/January/2008

Melbourne, Australia — Annual new car sales have surpassed the million mark in Australia for the first time ever, marking 2007 as a bumper year for car companies.

The official number of vehicles sold in Australia in 2007 was 1.05 million, setting a sales record. The previous record was set in 2005 (988,269 sales).

As profits rise and sales increase, largely on the back of small cars, SUVs, and light commercial vehicles such as utes, car makers are investing more time, effort, and money into securing new customers.

Things like free insurance, free petrol, and even free tickets to events have been used to lure buyers away from established brands.

Australia's peak automotive body, the Federal Chamber of Automotive Industries, was quick to pounce on the record sales figures: "One million new motor vehicles sales in a country of 21 million people is an impressive achievement," said FCAI chief executive Andrew McKellar. 

He said that it "ranks as one of the highest rates of new car purchase in the developed world."

In terms of outright new car sales, the market leader for the fifth consecutive year was Toyota, with a whopping 22.5% market share. 

That means that more than one in every five new cars sold in Australia display a Toyota badge. Toyota predicts that figure will rise in future.

The second most popular brand in Australia was GM Holden, which secured 14% of the Australian market. 

Ford was third with 10.3 per cent.

Interestingly however, Australia's most popular car was not a Toyota. The Holden Commodore was the highest selling model in Australia during 2007, with 57,307 sales. Toyota came in second place with the Corolla, which sold 47,792 units in 2007.

The big surprise was Australia's third most successful car - the Toyota HiLux utility. Toyota sold 42,009 HiLux models in 2007, which highlighted how popular light commercial vehicles are becoming. 

The humble ute is increasingly seen as more than just a utilitarian vehicle, but also a lifestyle and family vehicle.

While Holden, Ford, and Toyota dominated the sales charts, a majority of car makers recorded sales growth, including many imported luxury car marques. Audi recorded a 25% rise in new car sales compared to the previous year, from 5,777 to 7,225.

Other major contributors to the booming new car market were small cars, which increased by 13,030 sales (5.9%). 

Light cars (another category of slightly larger small cars - Toyota Corolla etc) were also up by 11,805 sales, or about 10% year on year.

Four-wheel drives made a huge impact in 2007, following a few years of average sales.

" Mr McKellar said."While sales of smaller cars have been growing strongly, in 2007 sales of SUVs and 4x4 Pick-ups grew even faster," said FCAI chief executive Andrew McKellar.

In 2007, SUV sales increased by 27,329, which represents significant growth of 16%.

While the small car segment was the single biggest contributor to the overall new car market with 232,388 sales in 2007, large cars managed to hold on to a sizable chunk of the market with 139,677.

With Ford's new Falcon winging it's way to dealerships in the next few months, the large car segment is expected to pick up even more in 2008. 

Despite year on year growth of just 2.3% in the large car market, the FCAI says that there is still a viable market for large cars such as the Commodore, Falcon, 380, and Aurion: "The 2007 figures show it would be far too simplistic to conclude, as some have, that there is a general move by Australian consumers to smaller cars," Mr McKellar said.

The FCAI is predicting similar sales for 2008, to reach around 1 million units. 

"Last year the motor vehicle market grew at approximately twice the rate of the economy as a whole.

"Although economic fundamentals remain strong and consumer confidence is proving to be robust, we think future growth will be more closely aligned with trends in overall domestic demand," said the FCAI's chief executive Mr McKellar, suggesting that the current record may not be broken in 2008.