June new-car sales slump as supply constraints bite

Stock shortages have had a big impact on new-car sales in 2022 but some makes and models have weathered the storm better than others. Here are the hits and misses.

Car sales have slumped in the first half of the year as stock shortages, plant closures and shipping constraints have choked the supply of new vehicles. Waiting times for some popular models stretch out beyond a year.

The Ford Ranger, Toyota HiLux and Isuzu D-Max are three of the best selling utes. Taken by Thomas Wielecki

But some makers are weathering the storm better than others. Here’s what’s hot and what’s not in the first six months of 2022.

HOT

Toyota

Toyota has still posted positive growth despite shortages of its most popular models.

Australia’s favourite car brand continues to stretch its advantage over the rest of the market. More than one in five Australian new-car buyers choose a Toyota and the brand has managed a modest rise in sales this year despite shortages of its popular RAV4 Hybrid. Waiting times for that car now stretch beyond 12 months. In June, four of the six top-selling vehicles were Toyotas. The HiLux led the way, recording its highest monthly sales result on record and outselling its nearest rival by more than two-to-one. Toyota’s sales for the first six months were the second highest on record, despite a market that is down 5 per cent.

Off-roaders

The Toyota LandCruiser is extremely popular.

SUVs have been on the rise for several years, but since Covid there’s been a shift to genuine four-wheel-drives that can venture further off the beaten track. Half of the top ten were four-wheel-drives in June. Popular choices include the HiLux, Ford’s Ranger ute and Everest wagon, the Isuzu D-Max and MU-X and Mitsubishi’s Triton and Pajero Sport. The new Toyota LandCruiser is also selling strongly, as is Nissan’s V8-powered Patrol, which appears unaffected by rising fuel prices.

Chinese brands

MG is no longer a fringe car brand.

Sales of Chinese vehicles were up by close to 40 per cent in the first half of the year, led by the continuing success of MG. The brand has overtaken established names including Volkswagen, Nissan, Honda and Subaru to climb to seventh place on the sales ladder. Sales are up by 25 per cent, led by the HS and ZS SUVs and the cut-price MG3. Great Wall Motors sales are up by 13 per cent.

NOT

Honda

The Honda Civic used to be one of the best selling small cars in the country.

Last July the Japanese brand made a controversial move to introduce no-haggle pricing and cut dealers out of the sales process. It appears to have backfired. While supply issues have no doubt had an effect, the brand’s sales have slumped by almost a third in the first half of the year. May and June sales have been higher than 2021 but last year was a bad year for the brand. In the first six months of 2020, which was affected by Covid lockdowns, Honda sold more than 16,000 vehicles. This year it sold just 7621. Price rises for the new Civic and HR-V haven’t helped.

Mazda

Mazda’s sales slumped badly in June.

Australia’s second-most popular brand has struggled to keep pace with Toyota this year. Sales are down by 17 per cent year-to-date and June was a shocker – sales slumped by 50 per cent and the brand was outsold by Hyundai and Kia. As a result, the gap to Mitsubishi and Kia has been cut dramatically. Sales of the city-focused CX-3 SUV have stalled in the face of competition from Hyundai’s Venue, Kia’s Stonic and the smash-hit Suzuki Jimny. Mazda3 sales have also slumped, while the once-dominant CX-5 family SUV now plays a distant second fiddle to Toyota’s RAV4. The brand also had a rare sales miss with its MX-30 hybrid and EV. Year-to-date only 265 have been sold.

Volkswagen Group

Volkswagen is having a hard time getting stock.

This year was meant to be a bumper one for VW, which has refreshed most of its line-up in the past 12 months. But supply problems have led to an alarming 37.5 per cent decline in the first half of the year. The ageing Amarok ute, which will be replaced soon, has recorded one of the biggest drops, but the brand’s SUV line-up has also been hit hard. The news is the same for luxury arm Audi, which is down 30 per cent. Sister brand Skoda has recorded a 42 per cent dip in sales. Big price increases across the range haven’t helped Skoda. The Kamiq small SUV was priced from $29,990 drive-away when it won News Corp’s Car of the Year award in 2020. Prices now start at $37,990 drive-away.