September New vehicle sales summary – Total Industry Volume down by 13%

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September New vehicle sales summary – Total Industry Volume down by 13%

KEY POINTS:

♦ The Total Industry Volume (TIV) for the month declined by 13% or 6,482 units month-on-month compared to the TIV for August.

♦ The decline in sales was attributed to many holidays and also the belief by some consumers that Budget 2020 would have something which would reduce new car prices. However, it should be apparent that for some time now, changes affecting the auto industry are not announced during the Budget presentation (as they were in the 1990s and before).

♦ The TIV in September 2019 was 43% higher than in the same month in 2018 because, a year ago, the GST-free period had ended and sales slowed down substantially. 40,266 passenger vehicles (excluding pick-up trucks) were registered in September 2019 compared to 27,018 vehicles in September 2018.

♦ However, for commercial vehicles, the difference was small – 4,400 vehicles in 2019 against 4,222 in 2018.

♦ Going into the fourth and final quarter of the year, October sales are expected to improve and sales promotions start kicking in to start clearing stock before the year ends.

♦ The cumulative sales volume after 9 months has reached 442,991 units, 3% lower than for the same period in 2018. The MAA has forecast 600,000 units for 2019 so the remaining volume is 157,009 units. With 3 months to go, that means 52,336 units must be delivered during each of the month.

♦ Cumulative production, however, was higher in 2018 for the first 9 months with 426,041 units leaving local plants. For the same period in 2018, the total number was 420,498 units. To see what vehicles each plant produced this here, click here.