INDEPENDENT NEWS

New car registrations drop 14% in May

Published: Wed 5 Jun 2019 11:16 AM
New car registrations drop 14% in May as cooling market continues
By Paul McBeth
June 5 (BusinessDesk) - New car registrations fell almost 14 percent in May from a year earlier, as the local vehicle market continues to slow after successive records in recent years.
Motor Industry Association figures show 12,259 new vehicles were registered in May, down from 14,169 a year earlier. Demand for passenger vehicles was hit harder, down almost 18 percent at 7,624, while commercial registrations fell 5.3 percent to 4,635.
"The outturn for May 2019 indicates the new vehicle market is softening, consistent with weaker regional vehicle sales in 2019 across Australia and New Zealand," MIA chief executive David Crawford said in a statement.
New Zealand's vehicle market has been cooling this year, and appears set to end its five-year run of racking up record sales. The market had been buoyed by low interest rates providing cheap finance and a strong kiwi dollar lowering the cost of imports. At the same time a growing population drove demand for vehicles and record tourism numbers encouraged rental car operators to expand their fleets.
In the year to date, 61,715 new vehicles were registered, down from 64,985 a year earlier.
Toyota remains the most popular manufacturer, with a market share of 15 percent so far this year. That's followed by Ford at 11 percent, Mitsubishi at 9 percent, and Mazda and Holden each at about 8 percent.
Toyota New Zealand generated a record $1.4 billion of revenue in the March 2018 year, with new and used car sales totalling 42,581, according to accounts lodged with the Companies Office. It reported a profit of $21.9 million. That compared to a profit of $21.7 million on sales of $1.18 billion in the March 2017 year.
As a branch of a global group, it purchases the bulk of its products from related parties. In the March 2018 year, that amounted to $1.11 billion, up from $932.8 million a year earlier.
Toyota's revenue is more than twice that of its nearest rival, Ford Motor Company of New Zealand. Ford generated revenue of $630.9 million in calendar 2018, generating a profit of $4.2 million. That was down from revenue of $636.9 million in 2017 and a profit of $8.2 million. Its related party purchases totalled $577 million in 2018, up from $540.7 million a year earlier.
(BusinessDesk)
ends
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Media reports regarding possible transaction to acquire Stuff
By: NZME
Plan of action to protect seabirds
By: New Zealand Government
Fairer rules for tenants and landlords
By: New Zealand Government
Official Cash Rate unchanged at 1 percent
By: Reserve Bank
Avocados at lowest price in almost three years
By: Statistics New Zealand
Endangered seabirds need strong fishing rules
By: Forest And Bird
Call for zero bycatch, 2016 a bad year for seabirds
By: Forest and Bird
REINZ welcomes banning of rental bidding with RTA proposals
By: REINZ
Landlords will not be able to protect neighbours
By: NZ Property Investors Federation
Proposed changes to tenancy rights are trickle down
By: Manawatu Tenants' Union
Reserve Bank predicts further economic slowdown
By: New Zealand National Party
Reserve Bank gets it right by keeping OCR steady
By: ACT New Zealand
XE Data Update - RBNZ Official Cash Rate decision
By: XE Money Transfer
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media