New car sales fall 10pc in February as Holden’s end bites

The motor trade says dire February sales and Holden’s demise only compound the woe for an industry already well and truly in recession.

Holden dealers are offering deep discounts on remaining stock. Picture: Supplied

Car sales plummeted 10 per cent in February, confirming the worst fears for an industry now deep in recession.

The monthly total of 79,940 vehicles is the lowest in more than a decade and cements almost two years of continuous decline.

Releasing the figures on Wednesday, the Federal Chamber of Automotive Industries said the decision to kill off the Holden brand had compounded the bad news.

“There is no doubt that this is an extraordinarily difficult time for the automotive industry – a situation sadly underlined by the recent announcement of Holden’s withdrawal from the Australian market,” said FCAI chief executive Tony Weber.

On its own, Holden accounts for one-third of all the sales lost in February, despite deals on remaining stock.

Other volume makers in the front line include Mazda and Mitsubishi, with deliveries down 22 per cent and 35 per cent respectively on February last year.

Compared with two years ago when demand was running hot, almost 2500 fewer cars are leaving dealerships every week this year.

“In economic terms, a recession is declared after two quarters of negative growth – and this industry has now seen seven consecutive quarters of negative growth,” Mr Weber conceded.

Mainstream brands bucking the trend include, Toyota, with its Hilux and RAV4 the most popular vehicles last month, and Kia thanks to its Cerato small car.

But there are more green shoots at the premium end of the market, with Audi demand recovering 10 per cent year-to-date and Land Rover 17 per cent.

Other winners include Volvo, which continues its strong run with deliveries up 12 per cent this year, and Porsche, which has shrugged off last supply bottlenecks to rebound 56 per cent thanks to its Macan SUV.