Shock! Hyundai becomes Australia’s top selling car for the month of June

IT’S the little car that started the $13,990 drive-away craze in the late 1990s, and now it’s beaten all the big names, to take out the number one spot.

Carsguide 8088m Hyundai i30 Series II 2015

EXCLUSIVE

A cheap and cheerful car brand introduced to Australia in 1986 by a savvy Perth car dealer and colourful businessman, the late Alan Bond, has done the unthinkable.

Hyundai has shocked the Australian motor industry by becoming the top-selling car last month. It’s the first time the South Korean brand has been in the top spot since the plucky Hyundai Excel knocked the Holden Commodore off its perch in June 1998.

Driven by a special offer of $19,990 drive-away with automatic transmission and a rear-view camera — about $7000 off full price — the Hyundai i30 hatchback outsold the reigning champions the Toyota Corolla and Mazda3 in June, according to preliminary figures.

More than three out of every four Hyundai i30s sold were of the cut-price $19,990 model, dealer sources have told News Corp Australia.

Long road ... Hyundai’s second victory since arriving in 1986. Picture: Supplied

More than 5500 Hyundai i30 hatchbacks were delivered last month, easily eclipsing the tally of 4150 Toyota Corollas and 4130 Mazda 3s (although the Corolla is still ahead for the year to date).

The result is more remarkable once you take into account the Hyundai i30 tally is for hatchback sales alone, whereas the Toyota and Mazda totals include both sedans and hatches.

The sedan version of the Hyundai i30 is sold with another badge, otherwise the leading margin would have been even greater (more than 680 Hyundai Elantra sedans were sold in June).

Sales of utes were also strong in the rush to the end of the financial year, filling three of the Top 10 places and the Toyota HiLux claiming second outright.

Streeting ahead ... the Toyota Corolla is still in front in year-to-date sales. Picture: Supplied

In other upsets, the Volkswagen Golf, driven by sharp discounting to $24,990 drive-away, edged ahead of the Toyota Camry and just behind the Holden Commodore.

Seven of the Top 10 brands posted significant gains, but Holden, Ford and Nissan sales were down compared to the same month last year.

The Ford Falcon was once again outsold by the Mercedes-Benz C Class (530 deliveries versus 900).

Figures for the total market are not due to be published until Friday, however industry insiders believe the car industry is on track for a new record year.

Trade deal ... Toyota HiLux was one of three utes in the Top 10. Picture: Supplied

Record low interest rates — rather than the $20,000 tax incentive for small businesses announced in the latest Federal Budget — are the driving force behind the sales surge, say dealer sources.

“People are still trying to get their head around what the $20,000 tax break means for their business, but they also need to have the money to spend in the first place,” said a finance expert at a leading metropolitan Toyota dealership.

“The biggest driver is interest rates. People are figuring out they can pay less than what they were paying three or four years ago and get a brand-new car. Or they can make the same repayments and get a dearer car.”

Treat yourself ... low interest rates rather than tax breaks were sales drivers. Picture: Supplied

Figures supplied to News Corp Australia show that the repayments on a $20,000 car today can be as low as $387 per month, or $89 a week, in a best-case scenario of 6 per cent interest.

But three years ago, a $20,000 car typically cost about $486 per month, with the buyer paying more than $9000 in interest over five years, versus $3200 in interest over the same period today.

Alternatively, the repayments of $486 per month at today’s low interest rates will buy a $25,000 car rather than a $20,000 car.

Meanwhile, the industry is still coming to grips with Hyundai’s shock result just 29 years after arriving in Australia.

Hyundai cars were introduced locally in 1986 by Perth car dealer John Hughes — who went on to become the company’s biggest retail outlet in the southern hemisphere from 1997 to 2003 — with financial backing by Alan Bond.

But with Bond Corportation suffering financial difficulties, the distribution rights in Australia were then handled by a Singapore-based company from 1990 until Hyundai established a head office locally in 2003.

Indeed, Hyundai is now a challenger for third place outright if it can overtake Holden and push the former Number One to fourth by the end of the year.

Holden is currently third place behind Toyota and Mazda when the year-to-date tally is calculated, but is locked in a bumper-to-bumper battle with Hyundai.

Hyundai has been ahead of Holden for three of the past six months, and the two brands are separated by just 1100 sales in the January-to-June tally.

After being beaten by Hyundai in May, Holden leapt ahead in June thanks to the biggest month ever for the Trax baby SUV, Captiva5 compact SUV, the Colorado ute, and Colorado7 seven-seat 4WD.

It was also the best result in 18 months for the Barina small car and the Commodore ute, while the Captiva7 posted its highest sales in a year.

Top 10 cars in June 2015

Hyundai i30 5520

Toyota HiLux 4280

Toyota Corolla 4150

Mazda3 4130

Mitsubishi Triton 3530

Ford Ranger 3370

Holden Commodore 2770

Volkswagen Golf 2680

Toyota Camry 2600

Mazda CX5 2510

Top 10 brands in June 2015

Toyota 21,500 up 3.3 per cent

Holden 11,930 down 3.3 per cent

Mazda 11,520 up 23 per cent

Hyundai 11,005 up 10 per cent

Mitsubishi 9015 up 8.9 per cent

Ford 7250 down 16.8 per cent

Volkswagen 7105 up 7.7 per cent

Nissan 6645 down 16.9 per cent

Honda 5310 up 70 per cent

Subaru 4500 up 16.9 per cent

* Preliminary figures. Official VFACTS data published Friday 3 July, 2015.

This reporter is on Twitter: @JoshuaDowling