By Neil Dowling on 7th July 2016 Market Reports Financial Year, Passenger, Sales, SUV

Buyers lose faith in economy cars – Click to enlarge

CLEAR directions away from a passenger-car driven market and one dominated by SUVs are again shown in the sales figures to June 2016, compared with the same period in 2015.

But predictions that the SUV sector would exceed the passenger-car segment are yet to materialise with cars 7821 units ahead in June at 53,832.

Year-to-date data also puts cars ahead, though the gap is narrowing as cars fell 5.2 per cent compared with 2015 and SUVs rose 11.4 per cent.

Importantly, the private market showed a definite retraction as prospective buyers held back before the federal election.

Normally, the pre-election jitters would carry over to the private business sector but the pre-June 30 $20,000 tax incentive available on assets including vehicles, and heavy discounting by commercial-vehicle suppliers, maintained sales strength.

In fact, it was the business buyers who ensured the June data ended in the black.

Market ahead on SUV surge

Passenger cars wane as Australians maintain interest in SUVs, utes

DATA dramatically shows how light and small-car segments, once the crutch of Australian sales, are no longer in favour.

SUVs and light-commercial vehicles – particularly the dual-purpose 4WD utes purchased mainly by leisure seekers than tradies – propped up the market and signaled to dealers exactly where buyer interest lies.

The 4WD Ford Ranger outsold the Toyota HiLux, with a 31.4 per cent increase in June sales compared with the same month in 2015.

Year-to-date, the HiLux is slightly ahead.

The Nissan Navara 4WD and Mazda BT-50 4WD enjoyed a strong month at the expense of the Mitsubishi Triton while others, including the Volkswagen Amarok 4WD, made only marginal gains.

The 2WD utes were led by HiLux but Isuzu and Nissan recorded big sales rises.

Even the light vans scored a positive result which indicates activity in the commercial business sector and confirms the adage that the LCV market is the barometer of a nation’s economic health.