Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ new car sales post monthly record in June

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



© Scoop Media

Business Headlines | Sci-Tech Headlines


Crown Accounts: Slightly Softer Growth Expected In PREFU

A slightly softer growth forecast is the main feature of largely unchanged Pre-election Fiscal Update compared to the Budget forecasts three months ago, Finance Minister Steven Joyce says. More>>


Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>


Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>