Market almost a quarter down on 2019

The new car market’s slump is becoming more pronounced.

DECLINING consumer interest, diminishing supply, a reflection of how a market looks when it isn’t being influenced by rental fleet demand? 

All have been cited by various sources within the motor industry as latest registrations data, the count for August, further supports a hefty drop in new vehicle registrations year-to-date compared to the same period last year.

“Year to date the market is down 23.8 percent, which is consistent with recent months data confirming our expectations that 2020 will finish about 25 percent down on 2019 volumes,” says David Crawford, chief executive of the Motor Industry Association, which represents new vehicle distributors.

His thought about why? Well, it all comes back to coronavirus, of course – the pandemic has slowed the vehicle industry and purchasing globally.

Specifically, Crawford ventures, it reflects a weaker economy affected by Covid-19. As for local influences? Well, the MIA hasn’t ventured that far, but others within the industry, speaking on condition of anonymity, have.

One says it’s pretty clear, now, that some brands are having trouble achieving supply of new products. Looking at more precise datasets than those shared by the MIA reveals a lot more, he suggests.

Another says the year to date decline reduces significantly when rental counts are excluded. “August can be a big month for rentals. Take them out and the decline is more like eight percent year-on-year, which isn’t so bad all things considered.”

Fair call? Well, when rentals are under the spotlight, really just one brand is affected more than any other, and that’s Toyota New Zealand. Interestingly enough, in a state of the national chat with motoring writers during last week’s MY21 Hilux event, TNZ CEO Neeraj Lala touched on the impact the collapse of the rental market had on his volume, noting that the rental count year to date in 2020 was about 90 percent down on the same period last year. 

In total, some 10,902 vehicles were registered last month, a decrease of 3623 units compared to September 2019.  

The top three plate-ups were the Ford Ranger (663 units) leading the Toyota RAV4 (464 units), and the Mitsubishi Triton (360 units).

The MIA also note a spike in electric vehicle registrations, due mainly to the Tesla Model 3; dissemination of the latest shipment of presumably pre-ordered cars accounted for 139 of the 243 fully electric vehicle registrations. Additionally, 54 plug-in hybrids and 927 hybrids – the latter mostly Toyotas - hit the road. 

Toyota was the market leader for passenger and SUV registrations with 16 percent market share (1,217 units) followed by Kia with 10 percent (801) and then Suzuki with 8 percent (625).

In the commercial sector, Ford retained the market lead with 25 percent market share (803 units) followed by Toyota with 13 percent (406) and Mitsubishi third with 11 percent (360).

D-Max joins utedom's business class

The new D-Max is weeks from launch, but pricing is out now. We knew those extras would have to add to the bottom line, but … gosh.

TECHNOLOGY enhancements surely set to elevate Isuzu’s D-Max’s status in ute-dom have also delivered with a hefty price rise.

Announcement today of the model range and prices for an eight-strong line-up reaching the showroom next month suggests the new derivatives will cost between $8000 to $10,000 more than their equivalents in the previous range when full retails are considered, and much more if comparison is made against the old models’ runout pricing.

The cheapest incoming model, a rear-drive LX, starts at $49,990 while the flagship, called the X-Terrain, is entering the market for $75,490.

The increases were always in the wind; they’ve hit in every market where the rig sells and reflect how much change has come to the model, through its makers – not just Isuzu this time, but also Mazda – seeming to determine it’s time to create a more direct rival for the sector’s big guns, Ford Ranger and Toyota Hilux.

Yet the end cost of the effort necessitated to lift its game might nonetheless still come as a big shock to D-Max’s traditional customer base, which has been used to be spending much less.

It might also titillate Hilux and Ranger faithful, who will note that some D-Max models seem to be more expensive than comparable models in the Toyota and Ford lines.

The old D-Max at full retail was positioned between $39,890 and $61,990, but an aggressive clearance over the last few months has delivered those editions for substantially reduced stickers.

How the brand intends to argue the defence remains unknown. Isuzu Utes NZ general manager Sam Waller and public relations manager Kimberley Waters could not be reached for comment and the press information sent out today steered clear of directly addressing this issue.

The new line’s equipment provision was detailed by MotoringNZ on August 16 (https://www.motoringnz.com/news/2020/8/16/d-heading-for-a-plus?rq=d-max).

Our story then suggested that this model and the Mazda BT-50 that derives from it are set to deliver enough advanced safety and technology to reset market expectations.

That has been further reinforced by today’s release of information that confirms that every single model in the incoming range – including the three LX tradie versions that arrive in singe, space and double cab configurations, in manual and auto and two and four-wheel-drive formats –will deliver with an advanced safety package, including class-first advances of perimeter sensing technology and a centre airbag.

Other improvements to the entry derivatives include a seven inch touchscreen with wireless Apple CarPlay and Android Auto, automatic lights and wipers and adaptive cruise control for automatic models.

The next level is the LS-M, which avails in double cab 4WD with automatic or manual transmissions. It adds to the LX provision by implementing LED head lights with LED daytime running lights, a plusher trim. It rides on 17 inch alloys.

The LS line above this goes to a nine inch touchscreen with satellite navigation, Apple CarPlay and Android Auto, dual-zone climate air-conditioning, rear parking sensors. This edition runs on 18 inch alloys.

The top rung of the ladder is occupied by X-Terrain, which purely formats in an automatic double cab four-wheel-drive configuration.

In addition to the active safety technology of the other variants, it includes a powered driver seat, leather trim, a smart proximity key with remote engine start, front and rear parking sensors, wheel arch extensions and gun-metal exterior highlights (wheels, grille, mirror caps, door handles and roof rails) as well as a matte black roller tonneau cover and under-rail tray liner.

This D-Max is a co-production with Mazda, whose own BT-50 version is also coming to NZ this year, though release details have yet to be divulged.

August return ok, but market sliding away

No prizes for guessing the top sellers in August.

TOYOTA’S RAV4 cleaned out the opposition in new passenger vehicle sales during August, selling at more than double the rate of anything else.

And the Ford Ranger ute almost achieved the same in the commercial market, taking a massive 27 per cent market share.

But overall, new vehicle registrations in August were once again adversely affected by the Covid-19 restrictions, especially the alert level 3 in Auckland, reports the Motor Industry Association.

August registrations came in at 15.8 percent below August last year, with 10,610 new vehicles registered, which was down 1997 units on the same month in 2019.

“Year to date the market is down 23.6 percent in a year that remains heavily affected by the Covid-19 pandemic,” said MIA chief executive David Crawford.

The shining lights among the depressed level of sales were the Ranger and RAV4.

Ranger achieved 964 registrations, way ahead of the Toyota Hilux whose 524 registrations were no doubt affected by the fact the current model was in runout prior to launch of a new model this month.

The massive success of Ranger allowed Ford to retain the market lead in the commercial sector with a 30 per cent share, followed by Toyota on 19 per cent and Mitsubishi on 11 per cent.

The RAV4, with its hybrid models at the forefront, achieved 638 registrations to dominate the passenger and SUV segment – in second place was the Kia Sportage with 313 sales, followed by its smaller brother the Seltos with 243 registrations.

No surprises then that Toyota was market leader for passenger and SUV registrations with a 19 per cent share, followed by Kia on 10 per cent and Suzuki on 8 per cent.

Overall the top segments for August were once again dominated by SUVs. Top spot went to medium SUVs with a 22 per cent share, followed by 4x4 utes with 18 per cent, and then compact SUVs also with 18 per cent.

Top 15 most popular vehicles in August

Ford Ranger                  964 sales
Toyota RAV4                638
Toyota Hilux                 524
Mitsubishi Triton          376
Kia Sportage                 313
Kia Seltos                     243
Suzuki Swift                 220
Toyota C-HR                 200
Mazda BT-50                199
Mazda CX-5                  197
Toyota Corolla              194
Holden Colorado          193
Hyundai Tucson            188
Toyota Yaris                 183
Mitsubishi Outlander   159  

Hilux unmasked - new look, more kit, extra grunt

Here it is, the updated Hilux. Would you trade a Supra for it?

 THEY’RE calling it the most technically-advanced ute ever offered by Toyota – so is that enough for the reinvigorated Hilux, unveiled internationally today, to at last wrest market leadership from its core rival, Ford Ranger?

Toyota New Zealand chief operating officer Neeraj Lala is understandably bullish about the updated variant, whose exact launch timing this year still has yet to be revealed, though Australia has signalled it will start receiving stock in August.

His enthusiasm is such that he has vowed to ditch his current company car, a GR Supra, for an example of the latest truck, which is incoming in four specification levels – Workmate, SR, SR5 and the range topping SR5 Cruiser, the latter available in both 2WD and 4WD and automatic only.

“I believe the performance of this truck is so good, I’ll be swapping out my GR Supra so we can tow our go kart trailer to my son’s weekend races. I can’t wait to see customers return to Hilux with this significant improvement,” says Lala.

Introducing two years after the ute’s last big refresh, the new line will also contain a special launch edition inspired by the recent success of the Hilux Gladiator. Lala says this edition, which he spoke to MotoringNZ about last month, will be “custom-built … for New Zealand customers and conditions.”

What isn’t mentioned in launch material is the variant some in the national media insisted was coming – though Lala always said it was not: A Gazoo Racing version, supposed with a twin turbo diesel.

So, what’s in store? Well, it’s a restyling exercise, with a bolder, tougher-looking exterior ‘on most variants’. And that  2.8-litre turbo diesel engine offers more power, achieves better cooling, resolves the diesel particulate filter issues and has better fuel efficiency than its predecessor. Ride comfort, towing and equipment levels also improve.

Maximum power has been increased by 20kW to 150kW – so, a 15.3 percent lift -  while peak torque on automatic models has been ramped up to 500Nm, which represents an 11.1 percent/50Nm improvement.

Fuel consumption also improves by up to 11.1 percent while tuned accelerator response delivers greater driver control. The six-speed automatic remains.

Suspension upgrades run to revised shock-absorber tuning, new bushings and improved leaf-spring design. Toyota claims a more comfortable ride, particularly over rough roads and with low loads while maintaining the model’s legendary off-road capabilities.

In 4x4 models with downhill-assist control, an additional traction control feature when using 2WD mode reroutes torque to assist grip in muddy or grassy conditions on worksites.

Towing capacity for automatic 4x4 variants has been upgraded to a maximum of 3500kg to match manual versions. On 4x2 variants, all diesel automatics are now rated at 2800kg, an increase of up to 300kg.

Revised exterior styling is intended to deliver a ‘tough, robust on-road presence’ that is intended to be more in keeping with the global Toyota ute/truck family. Particularly obvious is that large trapezoidal grille that dominates the front design and incorporates more pronounced horizontal elements that deliver a wider, more planted look.

Grille surrounds differ by grade while newly designed headlights are smaller for a "meaner" look and light clusters include LEDs on high grades.

Inside, all models have been upgraded to an 8-inch display screen with enhanced voice recognition and the latest smartphone integration functions, including the adoption at last of Apple CarPlay and Android Auto. Higher grades are also equipped with satellite navigation and digital radio.

A 4.2-inch multi-information display in the instrument binnacle incorporates a digital speed readout, among other new functions. Overseas reports speak of front and rear parking sensors, keyless entry and start, automatic air-conditioning and a nine-speaker JBL stereo system with an 800W eight-channel amplifier, plus accessories such as roller bed covers, a locking tailgate and a 12-volt power supply for the cargo bed.

Full NZ pricing and specifications are expected to be announced closer to launch.