New vehicle sales decline in May, snapping 41 months of gains
Some 10,034 new vehicles were registered in May, down from 10,064 in the year earlier month.
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New Zealand sales of new vehicles declined in May, ending 41 months of increases, as demand for commercial vehicles fell.
Some 10,034 new vehicles were registered in May, down from 10,064 in the year earlier month, and marking the first annual monthly decline since November 2011, according to the Motor Industry Association. Commercial vehicle registrations slipped 2.2% to 3191 compared with May last year, which was a record for the month, while passenger vehicles edged up 0.6% to 6843.
Sales of new commercial vehicles have been rising to records as buoyant economic conditions stoked demand from tradespeople and farmers. However, as economic growth slows, weak dairy prices crimp farm income and the New Zealand dollar declines, sales growth appears to be stalling.
"While the market is still strong, it may be flattening out," said MIA chief executive David Crawford.
Still, Mr Crawford said some people may be holding off buying new vehicles in anticipation of discounted prices during the annual agricultural Fieldays this month.
In the first five months of this year, total new passenger and commercial vehicle sales are 6% ahead of last year. New vehicle sales hit a record 127,179 last year, beating the previous record of 123,247 from 1984, and ahead of the 113,294 recorded for 2013.
Japanese car maker Toyota was the top-selling brand in May, with a 16% market share, followed by Holden with 11%, and Ford on 10%.
(BusinessDesk)
Tina Morrison
Wed, 03 Jun 2015
Wed, 03 Jun 2015
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New vehicle sales decline in May, snapping 41 months of gains
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