The trend is indicative of the increased activity in fleets – business, government and rental – which hit its biggest sales tally in the past decade, but it is also reflective of the decline in new-vehicle sales to private buyers that reversed its decade-long upward movement in 2016.

It is a telling sign that dealerships might consider putting additional emphasis on the fleet market as private-car ownership in Australia stagnates.

Private passenger car and SUV sales for 2016 were 571,544 vehicles for 49.9 per cent of the non-heavy commercial market, compared with 573,480 units, representing a 50.1 per cent share.

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Fleets had 46 per cent of the market in 2015 and last exceeded the 2016 result in 2011 with a share of 51.2 per cent.

The business sector continues its tradition of being the biggest vehicle buyer in the fleet sector, with 472,156 units that equates to 82.4 per cent. It was followed by the rental sector with 10.5 per cent and government at 7.1 per cent.

Business and rentals also show an increase in vehicle purchases, continuing an upward trend since 2010, though government purchases have slid to 40,989 units in 2016 compared with 63,477 in 2010.

A closer look at sales shows fleets follow the industry trend by favouring SUVs in place of passenger cars. Light commercial vehicles are also on the rise, though here it is more attributable to a rise in demand for workhorse vehicles, predominantly one-tonne utes.

Businesses bought 178,917 passenger cars last year, up 3.5 per cent on 2015 though down on the previous decade. It increased its SUV take to 162,138 units – up 16 per cent on 2015 and up 40 per cent compared with 2010 – and light commercial vehicles topped 131,101 sales, up 17 per cent compared with 2015 and continuing an ascent from 2010.

By stark contrast, government purchases of passenger cars are at their lowest levels for seven years, now less that half (46 per cent) of what it bought in 2010.

But government agencies also bought more SUVs and light commercial vehicles, which are both back to 2012 levels.

Rental sales also showed a decline in passenger cars for 2016 – the lowest in the past seven years – and follows the trend with other vehicle types with a large rise in SUVs and a smaller increase in light commercial vehicles.

SUV sales for the car rental sector were 19,287 units in 2016, up 20 per cent on 2015 and a substantial  65 per cent on 2010 figures.

By Neil Dowling