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Sunday, March 19, 2023

Gross sales collapse tracked: The place did all a budget small vehicles go?

We stay in instances the place gas effectivity and affordability are rising priorities. The previous attributable to local weather change and the latter to a shaky financial scenario. 

But demand for the market’s least expensive and smallest vehicles has collapsed over the previous decade, as consumers flock to higher-riding SUVs. 

This in flip has seen manufacturers discontinue their smallest and least expensive vehicles at a price of knots, with the variety of Micro and Gentle vehicles on sale dropping from 38 fashions in 2013 to 16 on the finish of 2022. 

Accordingly, this lack of maximally reasonably priced used vehicles has undoubtedly put upward value pressures on used vehicles, as consumers on a finances go for pre-owned. 

We’ve gone via the gross sales figures from 2013 to now, and mapped the modifications within the Micro and Gentle Automobile lessons, as outlined by business stats database VFACTS. 

We’ve bundled these two lessons collectively as a result of, frankly, to a mean buyer they quantity to just about the identical factor. A Kia Picanto (Micro) and Toyota Yaris (Gentle) are hardly totally different from each other.

Because the desk exhibits, in 2013 Micro and Gentle Vehicles accounted for 136,300 gross sales, equal to a 12 per cent total share of the Australian new automobile market.

Gross sales and market share have steadily declined in largely linear style ever since, hitting their absolute low on the peak of COVID (lower than a 3rd of the 2013 tally). 

Even with the small rally since then taken under consideration, on the finish of 2022 the gross sales and market share of Micro and Gentle Vehicles have been barely a 3rd of the 2013 tally.

One key cause for this past altering shopper sentiment – and till lately low rates of interest – has been the push for automobile manufacturers to suit increasingly more driver-assist and luxurious options into even the most cost effective vehicles, thereby driving up the worth at a higher price than wage progress. 

As a result of these segments are so cost-sensitive, that hurts. It additionally means consumers would possibly simply chew the bullet and purchase that larger automobile as a result of the fee distinction over a cost interval actually isn’t all that nice. 

Correlation and causation aren’t all the time aligned, however take into account: In 2013 the Small SUV section had 6.6 per cent market share, from a listing of 20 fashions. By 2022 this market (now divided into Gentle SUV and Small SUV) accounted for 18.2 per cent share, from a complete of 44 fashions. 

So within the timeframe the place Micro/Gentle Automobile share plummeted to a 3rd of their authentic dimension, the market share of Gentle/Small SUVs tripled, and the selection of fashions greater than doubled.

Prime-selling Micro Vehicles 2013-22

  1. Kia Picanto: 31,566 (2016-22)
  2. Mitsubishi Mirage: 29,740 (2013-22)
  3. Fiat 500: 12,705 (2013-22)
  4. Nissan Micra: 9513 (2013-17)
  5. Holden Spark: 8203 (2013-19)

Prime-selling Gentle Vehicles 2013-22

  1. Mazda 2: 102,589 (2013-22)
  2. Toyota Yaris: 95,298 (2013-22)
  3. Hyundai Accent: 86,390 (2013-20)
  4. Suzuki Swift: 74,305 (2013-22)
  5. Kia Rio: 67,256 (2013-22)
  6. Volkswagen Polo: 59,174 (2013-22)
  7. Honda Jazz: 55,028 (2013-21)
  8. MG 3: 41,733 (2017-22)
  9. Holden Barina: 40,034 (2013-19)
  10. Hyundai i20: 39,865 (2013-15, 2021-22)

Micro and Gentle Automobile gross sales – a decade of decline

Micro and Gentle automobile gross sales, share and selection tracked

12 months Gross sales Share % Fashions
2022 50,446 4.7 16
2021 55,260 5.3 19
2020 43,527 4.7 21
2019 69,560 6.5 24
2018 84,531 7.4 27
2017 91,391 7.7 29
2016 105,228 9 29
2015 122,671 10.6 35
2014 124,374 11.2 39
2013 136,300 12.0 38

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