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FORD Australia is expecting market share growth this year as the Blue Oval brand looks to hold a relatively firm position while many of its major rivals find the going tougher in a slowing economy.

The latest industry data shows that Ford’s retail sales were in positive territory last month, its 5788 new registrations representing a 0.9 per cent increase over May last year and making it one of the few leading automotive brands with black ink next its name in the softening overall market.

The others were Kia – up 0.6 per cent last month and the only player among the top 10 to be ahead of its 2018 running rate for the year to date (+2.4%) – and Subaru, up 0.1 per cent in May, while the total market slipped 8.1 per cent and now stands at this same mark after the first five months of trading.

In terms of market share, Ford remained in fourth position last month with 6.3 per cent – up from 5.3 per cent in May last year and, for the year date, its 6.1 per cent share is lineball with where it was at the same point last year.

This sees it in fifth position behind Toyota on a dominant 19.1 per cent, Mazda on 10.2 and Hyundai and Mitsubishi both on 8.0, while Kia is tucked in behind Ford on 5.7 and Volkswagen is next best on 4.7 per cent YTD.

In stark contrast to its arch-rival in the blue corner, Holden’s share is continuing to head southward, the lion brand sitting in eighth position last month with a 4.7 per cent slice of the market – down from 5.1 per cent in May last year and leaving it with only 4.5 per cent for the year to date, which places it equal eighth with Nissan.

This time last year it was at 5.3 per cent YTD, while a year earlier it was at 7.1.

Holden’s 4392 retail sales last month represented a 14.4 per cent decline on May 2018, and the brand’s year-to-date volume is now down 21.9 per cent to 19,700 units.

In an interview with GoAuto at the Focus Active launch in northern New South Wales late last month, just ahead of May figures being officially released, Ford Australia marketing director Daniella Winter said the company is anticipating ongoing market share growth this year and that its outright sales – currently down 7.3 per cent to 26,850 units – would hinge on broader economic factors affecting the entire industry.

High hopes: Ford’s new higher-riding crossover-style Focus Active hatch is expected to boost sales this year, although the Blue Oval brand continues to rely heavily on the Ranger ute.

“Our share is more than in line with our expectations, but in ‘pieces’ (segments) it is down due to the softening industry,” she said.

Asked whether Ford’s retail sales downturn was wholly the result of economic and political factors, Ms Winter said: “I would say, yes.

“If anything, our share is up a little this year, versus prior year, so we’re holding at this stage but pieces are certainly down in line with the industry.

“I would expect share growth this year – I’m not going to give a specific per cent but obviously we’ve added a new model in terms of next-generation Focus, and we’re expecting strong sales with the new generation.

“We’ll see good results in the second half as supply comes on board with Active, and then we didn’t have Endura (large SUV) in our line-up last year, so we’ll get a sales increase from that also this year.

“So that will all bode well for an improvement in market share, which we’ll experience this year, and then we’ll just have to see what happens with the volatility of the industry – that’s undoubtedly going to affect us all in terms of whether or not the industry grows in the second half.

“We certainly hope it does but only the market (can show us how consumers) will respond and tell us how they feel about the industry as a total in terms of housing rates, our economic environment, our political environment.

“But hopefully with a (resolution) in government, we will see some stability we haven’t seen for some time.”

Ford is continuing to rely heavily on the Ranger as the backbone of its sales in Australia, the mid-size ute currently accounting for 62 per cent of its overall sales. The 4×4 version accounts for the vast majority of these (14,862), with sales up 13.5 per cent this year, and support from the Ford Transit (1241, +13.6%) and new-for-this-year Endura (810) are also helping cover the losses in other areas.

In particular, Mustang sportscar sales are down 9.3 per cent to 2073 units – notwithstanding a positive May result (+30.3%) – and the Mondeo mid-sizer has fallen 55.7 per cent (407). Ford’s SUVs are also struggling, with the mid-size Escape down 17.9 per cent (1681), the larger Everest sliding 12.8 per cent (1975) and the unloved EcoSport crossover dropping 46.8 per cent (214).

The sporty Fiesta ST light hatch originally scheduled to be on sale by now has been delayed until late this year or early next – production delays and specification issues are cited as the main reasons – and the staggered launch of the new Focus has seen the small car’s volume drop 18.3 per cent (to 1803 units) to the end of May.

However, Ms Winter said the Focus was still tracking “above expectations” and a better performance is expected now that the crossover-style Active has reached the market.

As GoAuto has exclusively revealed, a price-leading Focus Ambiente variant – from $23,490 – has also arrived in a bid to increase showroom traffic.

“We’ve had a staggered launch, so I would expect to see strong results this year for Focus overall versus our prior year. Again, whether or not it is ‘pieces’ growth will be dependent on what happens in the industry,” Ms Winter said.

Ford does not believe the Active will simply substitute sales of the slow-selling, ageing EcoSport small SUV, pointing to the fact that the latter is smaller, uses older technology and has a different price point.

“The vehicles are different in size, width, parameters – they’ve got different elements in terms of the content within them as well,” Ms Winter said.

“I think an EcoSport buyer may also look at a Focus, but I they won’t necessarily look 100 per cent this vehicle versus that vehicle. I do think its akin competitors will be likes of the (Mazda) CX-3 type of buyer, but I guess we’re going to see.

“We’ve only been on sale effectively one month, so it’s early days in terms of understanding the traffic that’s coming into the dealerships and what type of customer they’re seeing for that car versus what we’ve researched.”

By Terry Martin

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