Luxury car sales rebound in May in a buoyant property market

Most luxury car brands generated sturdy sales growth in May with confidence strong at the top end of the fresh vehicle market which has a close link to the buoyant property market and profits made by business owners.

Fresh vehicle sales for the middle market displayed a strong rebound in May after a soft April, with total sales across the industry up 6.Four per cent to 102,901 vehicles compared with the same month a year ago, lessening fears that the economy had entered into an extended consumer spending slowdown.

The improvement announced in VFACTS sales figures compiled by the Federal Chamber of Automotive Industries will also likely provide a boost for Australia’s two big listed car dealership companies, AP Eagers and Automotive Holdings Group, who each downgraded profit forecasts in late May because of weakness in vehicle sales in April.

High-end luxury brands such as Porsche, Maserati, Aston Martin, Ferrari, Jaguar and Rolls Royce all notched improved sales in May. Ferrari Australia chief executive officer Herbert Appleroth said on Monday there were buoyant confidence levels across its customer base, and even the Western Australian market had improved.

“There’s very strong sentiment across all states of Australia,” he said.

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“We’re certainly not observing anything on the horizon that is likely to shift that,” he said. Order books for two to three years out were very strong as patient buyers waited for vehicles with a long waiting list. Consumer confidence surveys which demonstrated niggling concerns in the broader economy weren’t reflected at the upper end of the luxury car market. “We’re the opposite,” he said.

Strong property prices were an significant influence on buyer confidence levels at the upper end of the vehicle market. Western Australia had been through a softer patch. But there was a quiet confidence among many small-to-medium business operators who were rewarding themselves across Australia even however figures demonstrate a moderation of house price growth in Sydney and Melbourne after a acute rise.

There were twenty one Ferrari vehicles sold in May, compared with fourteen in May, 2016. On a year-to-date basis for the very first five months, Ferrari sales were up to seventy nine vehicles, compared with seventy three at the same time in 2016.

Porsche sales enhanced to four hundred thirty in May, 2017, up from four hundred twenty four a year ago, while Maserati sales climbed to sixty four from forty nine in May, 2016. Aston Martin sales rose to thirteen in May, two thousand seventeen from nine, while five people bought a Rolls Royce in May, compared with one in May, 2016.

Lamborghini was one of the few luxury brands which sustained a fall in monthly sales, with sales ripping off to five compared with twenty one a year earlier.

Victoria’s status as an engine room of economic growth was enhanced, with the FCAI figures showcasing fresh vehicle sales in that state leaped by 11.Three per cent in May compared with the same month last year. It was around dual the Five.7 per cent growth rate in Queensland and Five.1 per cent growth in NSW.

FCAI chief executive Tony Weber said the Western Australian market had returned to growth with a Two.8 per cent increase. He said across the market, the approaching end of financial year had given extra stimulus in a “market rebound” in May.

Business purchases of Sports Utility Vehicles had hopped by 14.9 per cent, while light commercial purchases by government climbed by 31.7 per cent.

SUVs now make up 38.Five per cent of the total fresh vehicle market. But the fattest selling individual vehicle across the industry is the Toyota Hi-Lux ute, which enlargened its sales by thirteen per cent to Four,154 vehicles in May, against Three,675 in May, 2016.

Luxury car sales rebound in May in a buoyant property market

“There’s very strong sentiment across all states of Australia,” he said.

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Company Profile

“We’re certainly not witnessing anything on the horizon that is likely to shift that,” he said. Order books for two to three years out were very strong as patient buyers waited for vehicles with a long waiting list. Consumer confidence surveys which demonstrated niggling concerns in the broader economy weren’t reflected at the upper end of the luxury car market. “We’re the opposite,” he said.

Strong property prices were an significant influence on buyer confidence levels at the upper end of the vehicle market. Western Australia had been through a softer patch. But there was a quiet confidence among many small-to-medium business operators who were rewarding themselves across Australia even tho’ figures demonstrate a moderation of house price growth in Sydney and Melbourne after a acute rise.

Lamborghini was one of the few luxury brands which sustained a fall in monthly sales, with sales pulling down to five compared with twenty one a year earlier.

Victoria’s status as an engine room of economic growth was enhanced, with the FCAI figures displaying fresh vehicle sales in that state leaped by 11.Three per cent in May compared with the same month last year. It was around dual the Five.7 per cent growth rate in Queensland and Five.1 per cent growth in NSW.

Business purchases of Sports Utility Vehicles had hopped by 14.9 per cent, while light commercial purchases by government climbed by 31.7 per cent.

SUVs now make up 38.Five per cent of the total fresh vehicle market. But the thickest selling individual vehicle across the industry is the Toyota Hi-Lux ute, which enlargened its sales by thirteen per cent to Four,154 vehicles in May, against Three,675 in May, 2016.

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