sign up log in
Want to go ad-free? Find out how, here.

New cars still selling fast, boosted by rental demand from a booming tourism industry. Commercial vehicle sales up +12.8% year-on-year

New cars still selling fast, boosted by rental demand from a booming tourism industry. Commercial vehicle sales up +12.8% year-on-year

Slowdown?, what slowdown?

New passenger car sales in October were an all-time record.

And that was despite industry observers suggesting last month the peak had probably passed.

11,114 cars were sold in the month, besting the 10,795 sold in October 2016.

Year to date, sales of passenger and SUVs were up by 6.3% (5,321 units) and commercial vehicles by 18.0% (6,665 units) compared to 2016.

In October, 51.3% of passenger vehicle sales were SUV's. That is similar to the 2016 level, but actually much lower than we have seen for most of 2017.

Toyota was the market leader for passenger and SUV registrations with 31% market share (3,410 units) followed by Holden with 9% (1,006 units) and Mazda with 8% market share (903 units). The top selling passenger and SUV models for the month were the Toyota Corolla (1772 units of which 1589 were rentals which gave Toyota an unusual boost in the month) followed by the Toyota RAV4 (479 units of which 304 were rentals) and the Kia Sportage (354 units).

The booming tourism market is adding greatly to the demand for new cars here. October is usually big for rental fleet sales, but just more so this year.

Commercial vehicle sales were high as well, but not records. However, the 4,416 new commercial vehicles sold in October was more than a +12% rise from the same month a year ago.

At this time we don't have data for October used imports registered. This will come in a few days, but they have been running hot too, more than 12,500 per month for 16 straight months to September.

New vehicles sold

Select chart tabs

Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA
Source: NZTA

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.

20 Comments

What else do you expect?

National left a very strong economy.

Let's tip our hats to Bill English and Stephen Joyce, in particular.

Mark my words: they'll be back.

TTP

Up
0

What else do you expect? National left a very strong economy.

In what ways, specifically? Am curious...

National came into office promising to work on closing the productivity gap with Australia, but stopped talking about it later on, for good reason: NZ lagging.

When it comes to material living standards in the medium to longer-term, if productivity isn’t everything, it is almost everything. The terms of trade bob around, but probably won’t do much (harm or good) over the longer term, as they haven’t in New Zealand over 100 years. But productivity growth – managing to produce more per unit of inputs – is the basis for improved material living standards.

I am, however, happy to give them credit where it's due.

Up
0

Thanks to them nz has one of the highest household debts

Up
0

Notably, Japanese/Korean products are the biggest sellers. Much less maintenance/depreciation heartbreak than with the overpriced German (and other European) stuff.

Up
0

Theta 2, a korean piece of work, when the engine fails, guess what, no brakes.
That doesnt matter in a traffic jam of course but it does
raise the dishonesty of corporates competing in a globalised world, none appear to be exempt.

Up
0

For what it's worth, my ageing Jap model has cost me nothing but routine maintenance, tyres and a battery.

Like the economy under National, it's been a solid/dependable little workhorse.

TTP

Up
0

So in your humble opinion, what are the key drivers of the success of the NZ economy? Tourism? Exports of milk powder? Any idea what the Hosk thinks?

Up
0

Sounds like we've gone from being a rock star to an old Camry. That would align with the widening productivity gap with Australia, I guess. They must've traded up to a newer model.

Up
0

Hi JC

Hosk isn't my cup of tea.

Not interested in his views.

Have better things to do with my time than watch superficial tv programmes.

But each to their own.

TTP

Up
0

Yes, the Hosk is nothing but a windbag whose main purpose seems to be to cause reactions. Like an internet troll who gets paid to be on TV in tacky fashion.

But you claimed that NZ has a "strong economy left by the National govt". Are you saying that the quality of the economy is wholly determined by the govt? If not, what are the key drivers of the economy in your opinion?

Up
0

Hi JC,

I think governments often have much less impact than is commonly believed - whether they be libertarian or egalitarian.

But good quality regulation is certainly important because market failures are widespread and harmful in our society. Properly formulated policy/regulation can establish incentive structures that accord with preferred social and economic objectives/outcomes.

JC - on personal note, I enjoy your posts: we may not always agree but you demonstrate a depth of experience and thinking. Plus, you are polite.

TTP

Up
0

OK, so you think that the National govt was an effective "manager" to provide an environment conducive to economic activity. Perhaps. It's not particularly east to measure and depends what you're trying to measure.

Up
0

Am sure you're correct - but there are (many) others as well from ICT to viticulture and boutique beers.

Of course, there is room for improvement in economic management: labour productivity is too low and the exchange rate has been overvalued historically. There is always more that can be done to improve efficiency and equity outcomes.

Further, I worry about access to public health services, as well as literacy and numeracy standards in both children and adults.

Up
0

Where’s DubleD & Zach when you need them TTP ?
Surely they could provide the grunt to get you out of this

Up
0

Notice how this headline attracts little interest.

People here are much more interested in property sales than car sales - probably because there's not much money to be made from car ownership.

Can't blame them I suppose.

Up
0

Toothypoint, friend of Bovine ,are property sales and prices linked to vehicle sales ? In Ireland rising car sales was a marker for the subsequent housing upset.

Up
0

That's right. Asset bubbles are welcomed by govts because they juice consumer spending, which is the key driver of the Anglosphere economies. Prior to the GFC, one of the hottest industries in the U.S. was home theater hardware and installation. After house prices started falling, the industry was toast.

Up
0

With all due respect Bovine (my Cowpat friend), the mechanisms underpinning housing market activity are far more intricate and subtle/complex than might be explained by the volume of motor vehicle sales.

You need to be very careful in interpreting any such alleged "linkages". There's a lot of voodoo analysis around.

TTP

Up
0

Yep..a whole heap of dough spent on a rapidly depreciating 'asset'. It's more a sigh of a poorly functioning society rather something to be proud of.

Up
0

Our largest council insists on building suburbs far and wide outside of effective public transport. We are going to need more cars.

With the change of government Auckland will soon tax you for driving in from the far off suburbs they force you to live in, so they can have more money to build more suburbs further away and generate more tax revenue to build more far off suburbs. What could possibly go wrong?

Up
0