Sharechat Logo

New vehicle demand expected to soften after record 2018 registrations

Tuesday 8th January 2019

Text too small?

New Zealand new vehicle registrations hit a record in 2018 for the fifth year in a row but the market is now expected to soften, the Motor Industry Association said.

“Given current global economic factors, distributor expectations for 2019 indicate a softening of the market. Further steady growth in the new vehicle sector above 2018 outturn is not expected," said MIA chief executive David Crawford.

The market has been buoyed by low interest rates, record migration and tourism arrivals. While interest rates are set to remain low, migration is waning. The latest data from Statistics New Zealand showed that annual net migration continued to ease off its record highs in October, falling to its lowest level in three years. 

There were 161,519 new vehicles registered in the year, up 1 percent or 1,648 units versus 2017, Crawford said. 

Total registrations of passenger and SUVs for 2018 were down 0.4 percent on the year but commercial vehicles were up by 4 percent, he said. 

In December, new car registrations fell 3.6 percent on the previous December. Toyota remained the market leader with a 26 percent share, followed by Holden with 9 percent and Mitsubishi with 8 percent. 

In the commercial sector, Toyota was the leader in December with 21 percent of registrations, followed by Ford with 19 percent. 

The Ford Ranger, however, retained the top spot as the bestselling commercial model both in December and for the fourth year in a row. The Toyota Hilux was second. 

In the luxury passenger and SUV sector, Mercedes-Benz retained the 2018 market leader spot, followed by Audi and BMW. However, the market for these brands softened during 2018 compared to 2017, signaling a distinct pending softening in the rest of the vehicle market, said Crawford.

The MIA represents New Zealand distributors of new cars, trucks and motorbikes.


  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:

With Gold Surging, Miners Face Payouts Versus Production Dilemma
Orr May Signal Readiness to Cut Rates as Virus Hits New Zealand Economy
Sky shares plunge to all-time low as Spark steals cricket rights
Fonterra looking to lift China's importance in new strategy
A2, Synlait shares climb as takeover bid revives optimism about Chinese appetite for milk
Service sector activity eases in August but still expanding
Lumpy imports drive bigger July trade deficit than expected
Nimbys, carparks and the status quo under threat as govt tells big cities: grow up and out
Dairy manufacturers got better prices in June quarter
Orr defends RBNZ rate cut, says monetary policy looks ahead, not behind

IRG See IRG research reports