NZ new car sales post monthly record in June as Fieldays boosts commercial vehicles
By Paul McBeth
July 4 (BusinessDesk) - New Zealand's monthly new car sales rose to a record in June as the ongoing themes of cheap
finance and an expanding population were given a boost by the recent Fieldays event, where resurgent rural confidence
spurred farmers to buy commercial vehicles.
Registrations of new vehicles climbed 17 percent to 15,985 in June from the same month a year earlier, eclipsing the
previous monthly record in October 2016 when 14,709 cars were registered, the Motor Industry Association said in a
statement. Of that, passenger car sales rose 11 percent to 10,181 and commercial vehicles surged 29 percent to 5,804
with strong demand at Fieldays.
"While the 2017 Agricultural Fieldays held at the beginning of June has boosted the volume of new vehicle sales for the
month of June, low interest rates, strong net immigration, strong New Zealand currency and a healthy tourism market
continue to underpin the sales of new vehicles," MIA chief executive David Crawford said.
New Zealand's new car market has been a pillar of strength in the economy over the past three years as sales records
have regularly been beaten in an environment where employers have been able to cater to the expanding population, low
interest rates have made it easier to finance new vehicles, and a strong New Zealand dollar has lowered the price for
imports.
Government figures show vehicles, parts and accessories were the country's biggest imported commodity, rising 16 percent
to $8.26 billion in the 12 months ended May 31.
The MIA figures show Toyota remained the market leader with a 21 percent share of new cars sold in June, followed by
Ford with 11 percent and Holden at 8 percent.
Year-to-date sales climbed 15 percent to 79,131. Of that, Toyota held the biggest share at 17 percent, while Ford had 11
percent and Holden had 9 percent.
The strong car market has been a boon to the auto companies which have generated bigger revenue. Financial statements
filed with the Companies Office show Toyota New Zealand boosted revenue 8.6 percent to $1.18 billion in the year ended
March 31 and widened gross margins to 10 percent from 8.9 percent a year earlier, while Ford Motor Co's sales jumped 18
percent to $640.8 million in calendar 2016 with gross margins expanding to 6.5 percent from 5.1 percent.
Third-placed Holden New Zealand's revenue increased 7.8 percent to $572.7 million in calendar 2016, although its gross
margins shrank to 7.9 percent from 8.5 percent
(BusinessDesk)
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