Petrol cost puts dent in sales of big cars

Sales of big cars have plunged in the face of rocketing fuel prices.

Motor Industry Association figures show that large car sales, which accounted for 23.7 per cent of the market in 2000, made up only 10.5 per cent of new car sales last month.

In 2003, more that 18,100 "large" category vehicles were sold, but by last year that figure had dropped to 14,216.

At the same time, sales of new "light" and "micro" models have more than doubled, from 3998 vehicles in 2000 to more than 8300.

Association chief executive Perry Kerr said industry veterans believed large car sales figures as a percentage of total sales were only slightly higher than during the late 1970s, when carless days and 60 per cent sales taxes applied.

Buyers were moving from the Commodore, Falcon and three-litre-plus vehicles, to the Daihatsu and "around town" models. The exceptions were four-wheel-drives and SUVs, which had doubled in sales to 15,444 since 2000, he said.

But even in the SUV market, buyers were tending toward smaller models or diesels.

The association has 32 member companies accounting for more than 98 per cent of all new passenger, light commercial and heavy commercial vehicles sold.

But the Business Council for Sustainable Development yesterday dismissed the association's figures, claiming small-car sales were stuck in the "slow lane".

Chief executive Peter Neilson said the current rate of new micro, light and small-car sales, now running at 12.6 per cent of all new passenger vehicles, was "hopelessly low" if the country wanted to effectively lower emissions.

Though any reduction in the number of large cars was good, emission standards were just as important, and a number of new cars - predominantly Australian-made - were not up to world standards.

Many three- to four-year-old Japanese imports had lower fuel emissions than their new Australian counterparts, he said.

The Government is considering a Business Council proposal for cash incentives of up to $3000 for fuel-efficient, low-emission vehicles. The council believes that with incentives, about 86,000 efficient, low-emission new and imported cars would enter the national fleet each year.

However, Mr Kerr said the best way to clean up the New Zealand motor industry was to clamp down on the thousands of Japanese imported vehicles, which had pushed the average age of the national vehicle fleet to 12 years.

Last year, the average age of used Japanese imports was eight years, he said.

One Auckland Holden dealer, who did not wish to be named, said large vehicle sales had been relatively stable, though they had fallen in the past three months.

Many larger vehicles were often singled out as environmentally unfriendly when they were no worse than smaller vehicles, he said.

He said an Australian-made, 3.6-litre V6 Holden Executive used 11 litres to travel 100 km. A European-made 2.2-litre Holden Vectra used 9.1 litres. Both had comparable fuel emissions ratings of around 5 out of 10.

Large vehicles had other advantages, too, he said. "There's no substitute for size in terms of safety."

The Government is considering proposals to get drivers into cleaner, more efficient vehicles, including cash incentives.

Associate Transport Minister Judith Tizard's office said last night the proposal was "with the ministry".