Last month questions were being asked as to whether rising car sales were sustainable, or simply a response to commercial tax relief. Now the result is in.

Despite tax relief coming to an end, automotive industry has started the year on a positive note with a significant increase in the number of new vehicles sold during January.

Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 74,864 passenger cars, SUVs and commercial vehicles were sold in January, up 11.6% (or 7,785 vehicles) on the same month in 2009.

“This is a strong result and provides the market with a confidence boost heading into 2010,” FCAI chief executive Andrew McKellar says.Andrew Mckellar

“Business purchases remained strong in January with some buyers taking delivery of vehicles ordered last year under the Federal Government’s business tax break,” he says.

“New car affordability is better than ever and has been further enhanced by the tariff cut on many imported vehicles,” he says.

“New car buyers have effectively been handed a ‘tax cut’ and many brands have moved quickly to reduce prices or increase vehicle specifications,” Mr McKellar said.

“As a result, it is expected that this will encourage private buyers to return to the marketplace in greater numbers throughout the year,” he said.

Toyota retained the top selling position with a market share of 19.5%; followed by Holden with 14% and then Ford with 9%.

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After taking the luxury crown for the sixth successive year in 2009, BMW has continued to win the confidence of consumers to record a strong January sales result. With 1,481 registrations recorded in January 2010, compared to 1,031 units in 2009.

“Although cautious, the early signs that consumer confidence is stabilising is very pleasing as we enter a new sales year,” says Stavros Yallouridis, managing director of BMW Group Australia.

Hyundai posted a sales result of 6,208 units, its best ever January result since the brand started selling cars in Australia in 1986. Hyundai’s market share of 8.3% represents the equal best ever monthly result since the factory established the wholly owned subsidiary Hyundai Motor Company Australia in 2003.

“The team at Hyundai and the Hyundai Dealer network are thrilled with the start to 2010,” says Damien Meredith, Hyundai’s director of sales. “This month we launch the all-new ix35 compact SUV into the Australian market and we have other exciting all-new products on the way soon.”

Mazda Australia has started 2010 with its second best January on record. A total of 6,658 retails in January equated to a 1.9% year-on-year increase and an overall market share of 8.9%.

“Given our strong end to 2009 and the withdrawal of the Government’s investment allowance, it was always going to be interesting to see how the market would respond in the New Year,” says Mazda Australia’s managing director, Doug Dickson.

“The signs for Mazda throughout January have been extremely encouraging. Of course, we’re very pleased to see another solid performance from our perennially popular Mazda3, but it’s equally satisfying to see that the entire Mazda range is continuing to hit the sweet spot with Australian new car buyers.”

source: Autofile