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Home / New Zealand

Small gets big as costs bite

By Mathew Dearnaley
NZ Herald·
16 May, 2008 05:00 PM5 mins to read

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Sales of small cars are 50% higher than at this time last year.

Sales of small cars are 50% higher than at this time last year.

KEY POINTS:

Sales of new small cars in April were 50 per cent higher than for the same month last year, although rising fuel prices kept the brakes on purchases of large sedans.

A report compiled by the Motor Industry Association from Land Transport NZ records shows 2715 sales of light and small cars of up to 1800cc compared with 1807 in April last year.

But there were only 660 sales of new large cars with engines of about 3l or more, 200 down from 12 months earlier.

Sports cars also took a big hit - down by almost half to 75 sales.

Higher fuel prices had no effect on sales of compact, medium and large SUVs, of which 1160 were sold this April, up slightly from 1122 a year earlier.

Luxury SUV sales were down, though, from 175 last year to 107 this April. That figure did not include sales of 15 General Motors H3 Hummers, the giant SUV based on an American military vehicle of the same name.

Holden says it has just introduced the "baby" version of the brand, with a fuel rating of 13.9 litres per 100km for the manual, making it no more of a petrol guzzler than many standard-sized SUVs.

Industry association chief executive Perry Kerr says the economic doldrums have not extended to the overall new car market, which enjoyed its best April result since 1990, with 5551 sales.

But corporate fleet purchases or leases accounted for many of those sales.

Mr Kerr said the 2022 sales of new commercial vehicles were even more impressive, setting the highest April figure for 26 years.

The "green" car revolution has received a rev-up from banking giant Westpac, which plans to replace more than 100 of its vehicles over 12 months with more fuel-efficient models, including 57 Toyota Prius petrol-electric hybrids.

That is Toyota's largest supply of hybrid cars to a single company since sales began in 2003, although the owner-operators of the Green Cab taxi co-operative drive more than 200 around Auckland, Wellington and Christchurch.

Westpac says its fleet upgrade programme will reduce its carbon dioxide emissions by more than 500 tonnes a year.

"Our focus is not about buying credits to offset our impact but to actively target a reduction in CO2 output per customer," said the bank's head of corporate responsibility, Suzie Marsden.

"This approach is about changing behaviour, not excusing behaviour."

Toyota has sold more than 1000 new Prius hybrids - rated by the manufacturer as using an average of 4.4 litres of petrol for each 100km travelled - compared with 631 sales of new Honda Civic hybrids.

Almost 500 more hybrids, mainly Toyotas, have been sold since 2004 as second-hand imports by the Clean Green Car Company in Auckland.

These include a hybrid 4WD which the company has sold to Auckland's Civil Defence Emergency Management Group.

But Dog and Lemon Guide editor Clive Matthew-Wilson says hybrid cars are not necessarily more efficient than some conventional vehicles.

He cites an efficiency test by Britain's Sunday Times newspaper in which a 5-series BMW diesel car used less fuel than a Toyota Prius between London and Geneva. The BMW's fuel consumption was 5.62 litres per 100km, compared with 5.87 litres for the Prius.

But a Prius driven by former racing champion Chris Amon between Auckland and Wellington for the 2004 Energywise car rally used 4.02 litres for every 100km, making it the rally's overall winner.

* BUMPY ROAD FOR USED VEHICLES

Sales of used cars picked up slightly last month, but vehicle dealers remain battened down for a difficult winter.

"The light hasn't appeared at the end of the tunnel yet, but maybe there is a vague sense of gloom starting to lift," Independent Motor Vehicle Dealers' Association chief executive David Vinsen said yesterday.

Although sales of 67,607 used cars were 4.7 per cent higher than for April last year, most were private transactions, and Mr Vinsen noted little extra business in dealers' yards.

April figures were also 5 per cent higher than for March, a particularly bleak month in which Statistics NZ says a dive in vehicle retailing accounted for more than half of a $67 million drop in total retail sales from February's figure.

Although the Motor Industry Association reports that sales of new cars last month were the highest for any April since 1990, chief executive Perry Kerr acknowledges 60 per cent to 70 per cent would have gone to businesses rather than individuals.

Henderson-based vehicle importer and dealer Graeme Macdonald, of Croydon Wholesalers, said his sales had been "flat-lining" since September, but was determined to retain the jobs of his 12 or so staff.

Although he welcomed this week's easing of bank mortgage rates, he said much more was needed before many people would feel wealthy enough to buy their next car in the $8000 to $15,000 price range.

Mr Macdonald expected difficult times for the rest of this year, but hoped next year would offer relief through a change of government and a more benign environment for small businesses.

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