Sharechat Logo

NZ new vehicle market slowing after four years of record highs

Thursday 3rd May 2018

Text too small?

Growth in sales of new vehicles in New Zealand is slowing after four straight years of record highs.


Some 10,423 new vehicles were registered in April, down 2 percent from the 10,635 vehicles registered in April last year, according to Motor Industry Association data. Registrations of passenger and SUV vehicles fell 2.1 percent to 6,848, while commercial vehicle registrations slipped 1.8 percent to 3,575, marking the first time since December 2009 that both categories posted declines.


Motor vehicle registrations in the first four months of this year are up just 1.4 percent compared to the same period last year, suggesting vehicle sales may not hit a new record this year after strong growth over the past four years aided by competitive pricing, low interest rates, and record migration.


"The growth this year is pretty minimal, it’s pretty slim," said MIA chief executive David Crawford. "We are still at historically high levels but the growth in the market is probably going to be a bit slimmer this year compared to the last five years."


Crawford said the new vehicle market is likely to be "relatively stable" and may not continue its record-breaking run. 


Some economic indicators such as net immigration were weaker, although if tourism continues to run strong sales of rental vehicles may bolster the figures over spring, he said.


An estimated 65 percent of new vehicles are bought by businesses, typically on 3-year leases and that dynamic didn't appear to be changing, he said.


Competitive pricing had drawn more private buyers into the new vehicle market over the past three years who had traditionally bought one-owner vehicles and that dynamic appeared to have stabilised, he said.


Crawford noted that there may have been some delay in the way sales of new vehicles were recorded in April due to a change in the way that Toyota, the market leader, was recording its figures. As part of a new "buyer remorse" clause, Toyota allows buyers to return a car within seven days if they feel they've made the wrong choice, and the car isn't counted as a sale until that period has passed, creating an artificial delay.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares gain as Trade Me hits record on takeover
NZ dollar higher against USD as jitters about China-US trade tensions recede
Rakon boosts bank funding to meet increased telco demand
Underfunded Overseer farm management tool needs thorough review: Upton
Motor vehicle lending helps UDC lift annual profit 6%
Orr says RBNZ still under-resourced, funding model part of second phase of review
Leading business brokerage firm LINK raises a further NZ$3.45m in capital
Travel insurance and the AirNZ strike
Industrial heat a challenge for cost-effective emissions reduction
Hallenstein Glasson wary of margin squeeze in second half

IRG See IRG research reports