The number of new cars sold in 2020 was its lowest since 2013, with sales undermined by the pandemic shutdowns.
And when factories came back online, supply was an issue, crimping recovery sales.
Barely 80,000 new cars were sold in 2020. And apart from those obvious reasons, sales into rental fleets dived to record low levels as our inbound tourism industry ground to a halt.
The drop is -22% lower than for 2019, which itself was -3.6% lower than the record high set in 2018.
There has been no move into new energy vehicles in 2020. Only 1520 cars sold in the year were electric or hybrids, or less than 2% of the diminished total.
December car sales weren't great either to finish the year, being -33% below the same month in 2019. Only March and April had larger year-on-year declines in 2020.
Commercial vehicle sales didn't fair much better. In 2020 they were -24% lower than in 2019, and in December alone they were -8% below the year-ago level.
This article was prepared using raw NZTA data. It will be updated when the cleaned final data is available from MIA.
New vehicles sold
Select chart tabs
83 Comments
I'm with you on that TTP about modern cars. Why buy a new one at two year intervals.
I have had current RAV4 near eight years (170K now. Warranty 175K). Original plan was to keep it about 12 years (say 250K) but now thinking maybe longer.
Why change it now.
But when I do I will probably go for the same size and features etc, and it will be much clearer which power source to go for.
Probably electric, and they will be better then anyway. We shall see.
That photo is a graphic demonstration of the momentum generated by utes and big suvs.
Downright dangerous to other road users.
They have their own dangers of course with their propensity to roll. And the ones with ladder chassis when they stop suddenly when they hit a tree or a truck.
Was in Whiritoa over Xmas and noticed the brand new utes parked everywhere. Towing nothing but flat whites and all sparkling clean with impressive mags. Also noticed kiwis waistlines are getting larger each year - so Utes and SUVs now needed I guess to move the large families from door to door.
My son is fast heading for about that height, we stopped measuring once he passed 6ft shortly after turning 13. We were going to buy a ute for towing duties (being rural we tow Heavy Things) but had to resort to an Audi Q7 because it's the only vehicle we could find with enough rear leg and head room for him while not feeling agricultural and still being able to comfortably tow over 3,000kg. We just have to suck up the maintenance costs.
ETA: frazz will be happy to hear it's permanently filthy.
I've not driven that end, only the NP to Whanganui. https://www.stuff.co.nz/taranaki-daily-news/news/300136146/transport-op…
Did that home today. Would not in anyway shape or form describe it as a good road. Hamilton to Te Awamutu is great. After that...
Once you avoided the potholes, landslides, roadworks, trucks travelling at <80, suicidal maniacs coming at you on the wrong side of the road (Possibly due to their being only two small passing lanes from PioPio to Bell Block, and the afore mentioned trucks. Then you factor in the well over 100 road signs that specify a safe speed of anywhere from 35-75ks in a 100km open road (Yes I understand it is a limit, not a target). It was a leisurely drive in wet conditions on a road that is marked 1000km but reality is if you went about about 80 you were taking your life in your hands. State Highway 3. lol. It would be lucky to be a B road in Europe.
NP to Hawera is just one big pothole.
Taranaki roads are renowned for being $^.
https://www.stuff.co.nz/taranaki-daily-news/news/300136146/transport-op…
https://www.stuff.co.nz/taranaki-daily-news/news/300180435/18m-repair-s…
Those are the most recent exampe. Google back through the years and you will find a common theme.
You're preaching to the converted. A combination of old cars, poor behaviour and neglected infrastructure result in unsafe driving conditions. My issue with roading is that it's a part of the wider issue in NZ of infrastructure expenditure not matching the demands of our population growth.
Vehicle safety standards have improved out of sight since about 1996 so you cannot compare the now with then. If speed limits dropped to 80km/hr now then the road toll would also fall from what it is at 100km/hr. Basically our roads are S*@t however so if the roads were improved with dual carriageways and better seal surface the road toll would again fall further.
Agree entirely about our roads which are of a generally poor standard for a developed country. Chip-seal roads everywhere and many roads become corrugated quickly. Doesn't matter how good a car you buy, drive on these crap roads and it's noisy and can be bumpy. One thing I like about Auckland is that most roads are decent. Down here in Napier and throughout Hawkes Bay, most road surfaces really are crap. (Of course, traffic is the complete opposite but that's another story!)
Yep, I follow a couple of YouTube channels and they are often flipped even at low speed. The issue seems to be regulation, for cars there are set standards for max/min bumper height to prevent over/under riding and ensure crumple zones work as anticipated. However it seems many Utes, offroad vehicles and SUVs are not regulated. Combine that with a high centre of gravity and they seem to love to roll over in accidents.
There aren't many incentives for people to buy EVs or Hybrids, it would seem the 'climate emergency' isn't urgent enough for government to consider a discounted rate of road tax for low emissions vehicles. Even the new police vehicles are petrol 4x4 Skodas noting that a hybrid vehicle made no economic sense.
In the UK, 2020 vehicle sales saw electric vehicles rise to 6.5% of the market, up from 1.5% in 2019. In December 2020, the best selling vehicle in the UK was the Tesla Model 3. It sold 5,798 with the ICE Golf at #2 with 4,470. The electric VW ID.3 was #4 with 3,188. The current new price of the Tesla Model 3 pretty much negates the future fuel cost savings over a non electric car, but it is a very viable driving alternative to an internal combustion engine car of the same type. I know because we have made the switch. In 3 months, we have travelled 9,000km at a fuel cost of 6c per km (mix of home and public chargers). Electric is not the only answer to future transport and will actually have unintended consequences e.g. when the cost goes down, the use goes up. In real world home charged use, the cost per km is 2.25c. We think nothing of going on a 200km round trip as it costs the same as a cup of coffee.
We had a 2013 Leaf for a little over 2 years and it was brilliant for the daily commute, not to mention paying for itself in fuel cost savings over that time - once we'd sold it we ended up making a little money overall. In the end it was undone by a lack of range for rural use and our son outgrowing the back seat.
For 2+ car households where at least one vehicle is used solely for round-town trips they're an excellent choice. Even single car households that spend 95% of their time in urban environments it's manageable if they're willing to hire a vehicle for the few long-distance trips each year.
If MG bring the MG5 EV to NZ that becomes a really good 50k option. https://ev-database.org/car/1313/MG-MG5-EV
The MG ZS EV isn' bad on price. Once the Chinese makers (e.g. https://www.nio.com/es6) start building right hand drive there should be an influx of good cheap EV's.
But be careful of this tactic...
https://www.stuff.co.nz/motoring/evs/300143635/juicing-fake-battery-lif…
Exactly what I was told as I snaffled the last one in the dealers yard early November. DC Ute's are the tradie, fishing and towing fraternity go-to for obvious reasons, and it will be quite some time before hybrid or pure EV substitution can happen. One kicker: wading depth.....
From what I could gather supply is the major issue. One popular vehicle was a 6-7 month wait and I saw a 1yr old one with 10k km on the clock sell for 5k above the new price. Another vehicle, "hopefully" a 2-3 month wait and dealer could only give a non binding price. Both demos already pre sold for when they became available. I treat anything said by a car dealer similarly to a real estate agent but consistent message was that supply disruptions have meant they can't get enough to sell.
Remarkable more people aren't seeing the value of EV/NEV's.
Brand new Camry is 36k, or 42k hybrid.
By my numbers that will have offset itself by 100k, and if sold before that the difference is usually the same 6k.
Outlander PHEV is cheaper than a Ranger, and a very nice 4wd which can be extremely cheap to run for commuters.
Tesla 3, 76k etc etc.
We're thinking a new car in next 1-2 years, and depreciation risk makes us nervous to buy anything but NEV
The only factor not mentioned here is Migration - which could have a true effect on car sales. what's the things a migrant usually doesnt bring with them when they move countries (a car and a house). Even a number of temporary migrants and students will own a car whilst here and then sell off before leaving. with migration completely grinding to a halt - this would mean 15000-20000 less car sales a year minimum.
Classic cars are doing very nicely. People have cash from the overseas holiday budget. Buy the right car at the right time in its depreciation cycle and you can do very well. Look at old porsche 964s. Used to be 25k, now starting around 100k. More for the special models.
'70s to early '00s Japanese performance vehicles are booming too. What was $15-$20K a couple of years ago is now $30-$100K depending on what you're after. You won't find a cheap Skyline GTR or Supra RZ no matter how bad the condition, while things like late-model RX7s, S2000s and early Honda Type Rs are taking off too.
Then there's things like Ford Cosworths, Audi Quattros, BMW M3s...
If the classic definition of a Capital Asset - goods that can be used to produce other goods on a non- or slowly-consumable basis - is to be followed, then many types of Vehicle are, indeed, Assets. Examples:
- Utes - construction, repair and housing trades
- Trucks, essential for getting FMCG to the retail outlets, produce farm to market, online orders to the buyer, concrete to the foundations
I could extend this list, but it's enough to demolish the glib generalisation that 'vehicles aren't Assets'.....
Having Already Dropped for Years, US Auto Sales Plunged to 1970s Level in 2020
https://wolfstreet.com/2021/01/07/having-already-dropped-for-years-us-a…
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.