NZ new vehicle sales reach record for October, heading for yearly all-time high

Thursday 5th November 2015

New Zealand new vehicle sales had their strongest October month on record, with the annual tally heading for a new high.

New vehicle registrations increased 5 percent to 12,684 from the year earlier month, marking the highest ever level for an October month, according to the Lower Hutt based Motor Industry Association.

Registrations so far this year are tracking 5 percent ahead of the same period last year, and at their current rate look set to beat last year's record sales of 127,352 by about 7,000 units, the MIA said. Vehicle sales are continuing to advance, underpinned by record migration and tourism, even as economic growth slows following a slump in dairy prices, the nation's largest commodity export, and as the currency depreciates, making imports more expensive.

"The depreciation in the New Zealand dollar hasn't filtered through into prices yet - there have been some good deals," said MIA chief executive David Crawford. "Other economic indicators suggest it should be tapering off, but it's not. People still feel confident enough to be making these purchases."

Still, Crawford said he didn't expect the same level of growth next year.

Commercial vehicle registrations appeared to have plateaued as the agricultural sector tightened its belt amid lower commodity prices, and spending by tradespeople peaked in Christchurch, he said. Commercial vehicle registrations slipped 2 percent to 3,048 in October from the year earlier month.

Meanwhile, new passenger vehicle registrations rose 8 percent to 9,636, achieving a record for an October month.

Japanese car maker Toyota was the top selling brand in October, with the Toyota Corolla the top selling model for the month, helped by the seasonal lift in rental vehicle sales. Toyota secured a 26 percent market share, followed by Holden and Ford, each with 10 percent of the market.

BusinessDesk.co.nz

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