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Home / Business / Companies / Freight and logistics

Tradies and farmers lift commercial vehicle sales to April record

BusinessDesk
5 May, 2015 05:00 PM3 mins to read

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The top three best-selling models for April were all light commercial vehicles. Photo / Brett Phibb

The top three best-selling models for April were all light commercial vehicles. Photo / Brett Phibb

New Zealand sales of new commercial vehicles hit a record for April amid strong demand from tradespeople and farmers.

April registrations for new commercial vehicles rose 6 per cent to 2915, the highest level for the month on record, according to the Lower Hutt-based Motor Industry Association.

Sales for the first four months of this year are 14 per cent ahead of the same period last year and the strongest for the period on record, the MIA said.

New Zealand's economy is growing at about a 3 per cent annual rate, helped by low interest rates, high net migration and construction activity. That is helping sales of new vehicles, which rose to a record last year.

"When we have a strong economy and businesses are doing okay, they replace their plant," said MIA chief executive David Crawford.

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"In Christchurch and in Auckland in particular, when your builders, your plumbers, your bricklayers, your electricians etc are doing well, they will buy their utes and their vans for their trade."

The top three best-selling models for April were all light commercial vehicles - the Ford Ranger, Toyota Hilux and Nissan Navara.

More utes are also now being sold as dual purpose commercial and family vehicles as the fitouts become more "carlike", Crawford said.

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"They are being used for a mixture of commercial during the day and family during the nights and weekends."

A stronger New Zealand dollar, particularly against the aussie, euro and yen, is helping lower the cost of new vehicles in local currency terms, Crawford said.

Prices are also weakening ahead of the release of new models.

Increased sales and promotional activity during April and May before the June agricultural fieldays is also stoking sales of commercial vehicles to the agricultural and rural market.

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Still, Crawford said sales to the agricultural sector may weaken later in the year after Fonterra lowered its payout to dairy farmers to reflect declining global prices.

Meanwhile, sales of new passenger vehicles in April rose 3.6 per cent to a 26-year high for the month of 6375. The Toyota Corolla was the top selling passenger vehicle for the month. Sales in the first four months of the year are 5.2 per cent ahead of the year earlier period.

In the first four months of this year, total new passenger and commercial vehicle sales are 7 per cent ahead of last year at 42,545.

New vehicle sales hit a record 127,179 last year, beating the previous record of 123,247 from 1984, and ahead of the 113,294 recorded for 2013.

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