UPDATE: NZ new vehicle sales rise 10% in August   3 Sep 2015

Article - BusinessDesk

UPDATE: NZ new vehicle sales rise 10% in August, on track for record year

(Adds MIA comment throughout)

By Tina Morrison

Sept. 3 (BusinessDesk) - New Zealand new vehicle sales rose 10 percent in August and are on track to surpass last year's record as competition keeps a lid on prices even as a decline in the kiwi dollar pushes up costs for importers.

New vehicle registrations increased to 11,192 in August from 10,189 in the year earlier month, according to the Lower Hutt-based Motor Industry Association.

New vehicle sales so far this year are tracking 5 percent ahead of last year's record 127,179. That's a slower pace than the 12.4 percent growth in the past two years as a slump in dairy prices, the nation's largest commodity export, dents economic growth.

"The new vehicle market continues to defy general economic indicators," said MIA president John Manley. "Given the year-to-date sales position it is likely the industry will break the 130,000 unit barrier in 2015 for the first time ever."

New passenger vehicle registrations rose 9.4 percent to 7,752 compared with the year earlier month, marking the highest sales for an August month in 29 years. Commercial vehicle registrations advanced 11 percent to 3,440.

Manley said car dealers were reluctant to raise prices even as a decline in the kiwi dollar made imports more expensive.

"The new vehicle market is very competitive," he said. "Initially the distributors will probably try and keep the prices pretty much where they’re at, they’re always reluctant to raise retail prices because on paper anyway it puts them at a disadvantaged position to competitors, so they will try and deal with it through margins and incentives and things like that."

However he said a sustained drop in the currency made price increases "absolutely inevitable" and some buyers may be purchasing ahead of the hikes.

The New Zealand dollar recent traded at 63.67 US cents, compared with 83.26 cents a year earlier; at 76.82 yen from 87.42 yen a year ago; and 41.60 British pence, from 50.99 pence.

Last year's record sales, which broke the previous 1984 high, showed it had taken a long time for the industry to recover from the introduction of used car imports from Japan, he said.

During that time, New Zealand's population had increased to 4.6 million from 3.29 million.

Japanese car maker Toyota was the top selling brand in August, with 21 percent market share, followed by Ford with 11 percent, and Holden on 9 percent.

The Toyota Corolla was the top selling passenger model for the month, followed by the Toyota RAV4 and the Mazda 3.

The Ford Ranger was the top selling commercial vehicle model, followed by the Toyota Hilux and the Holden Colorado.

(BusinessDesk)

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more