Small Toyota outsells Commodore, Falcon in a ‘soft’ September

[SSbaby]

By NEIL McDONALD

THE Toyota Corolla became the top-selling Australian car last month, eclipsing Australian built large sedans including the Ford Falcon and Holden Commodore.

Separate sources have confirmed to GoAuto ahead of the industry VFACTS figures due out today that Toyota sold almost 5000 Corollas, blitzing the large-car results of Commodore with 4800 sales and Falcon with 3900 sales.

The only other time Corolla came close to Falcon and Commodore sales this year was in June when it managed 5221 sales. This latest result could be due to a large fleet or government purchase. Whatever the reason, in a softening sales month for many car brands Toyota outperformed expectations after an ambitious across-the-board sales campaign and a strong fleet push.

In a further blow to Ford and Holden, Toyota’s HiLux 4x2 utility outsold the Falcon and Commodore utes. The Corolla’s success comes just days after Toyota Australia’s marketing chief, David Buttner, told GoAuto the traditional notion of the country’s most popular vehicles were becoming outdated, particularly in the private buyer segment.

“Anecdotal evidence we’re getting back from the field is that the fleets are beginning to look for alternatives to a big car for a big country,” Mr Buttner said. “Where size used to be the status symbol in the corporate carpark, recent trends suggest that this may not be the case for much
longer.”

His views support the latest VFACTs figures, which are expected to show a severe softening in large-car sales at the hands of high petrol prices and specialist leasing packages. Apart from the Corolla, other small fourcylinder cars to do well last month were the Holden Astra, which managed about 3000 sales, and the Mazda3, which racked up 2596. The new Ford Focus and ageing Nissan Pulsar achieved around 1000 sales.

Such is the rush to smaller cars that Mazda Australia has revised upwards its 2005 forecast to 67,000, up 7000 on its estimates earlier this year. Mazda had a record September, selling 4931 vehicles as shipments of Mazda3, Mazda2 and Mazda6 provided a fi llip to sales.

Even the new MX5, which went on sale late in the month, managed 90 sales. Mazda’s September result was up 1062 or 27.4 per cent on the same month last year. Mr Buttner said that although large-car sales were continuing to be sustained by fl eets, the market for private buyers had slumped with a shift to medium and small cars.

He said the large-car segment still remained a hugely significant part of the market and a big player in government and rental agency fleet business. “If you look at year-to-date last year the passenger car market still represented 30 per cent,” he said. “This year it represents 26 percent – a decline – and that four per cent has gone to the small-car segment. The light and medium segments still represent exactly the same percentages.” However, there were signs of a shift and traditional family sedans are suffering from the growth of novated leases, he said.

GoAuto (pdf)
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[jmc-007]

I would say it has everything too do with fleets buying more

[buickman]

[QUOTE=jmc-007]I would say it has everything too do with fleets buying more[/QUOTE

No Toyota had the deals going for private buyers getting the same deal as fleets ads in September.
All the fleet cars at my work are Holdens,Fords & some Magnas.

buickman

[Dave_au]

Fuel prices also would make the 4cyl Hilux range a non-concerned/non-enthusiast tradies friend!

Consider the impact that Kia Van has made on Hi-ace van sales - a lot of these guys don't care what car they drive for work.

[paul7v7]

a big worry for Holden and Ford. Even Mitsu releasing the 380 at this time. Could Toyota Aus have some problems down the track too? I mean the only real cars they BUILD or ASSEMBLE here are the Camry and Avalon right? How are they selling? If we're moving away from big cars then the Camry and Avalon could be in trouble to?

[MITCHAY]

Even if the Camry isnt selling, if they are selling more in other segments then surely they would still come out on top right? Ie if Holden was selling less of the Commodore and Astra, and Ford was selling less of the Falcon and Focus.

It has alot to do with Toyotas promotion of last month which consisted of fleet prices to retail customers. There were ads on all of September saying: "We don't care whether you buy 1 or 100 cars, you will get big fleet savings!"

The long term effect of this will be resale values as discounting only pushes resale values down even further.

But all the same, good on Toyota as I'm sure Ford would love it if the Focus did the same.

[OzJavelin]

My initial reaction was "good .. let the loosers buy Corollas!!", but if the trend continues, volumes of Aussie 6/8cyl sedans will deminish to a point where it's not viable to build anymore :(
Think I'll be hanging onto older cars again .. BA/VZ might be the last of a great breed for awhile ..

[MITCHAY]

Isnt the BF falcon due out this month? Maybe people are just waiting for the newer model. Is the new Commodore due this month or next year?

[SSbaby]

The adage has always been "A big car for a big country". I can't see that changing, high fuel prices notwithstanding.

[Dave_au]

Originally Posted by RATT

The long term effect of this will be resale values as discounting only pushes resale values down even further.

Considering the Corolla has one of the best resale values around, I don't think they will care too much.

Originally Posted by Dave_au

Considering the Corolla has one of the best resale values around, I don't think they will care too much.

Yes it does, now. But if Toyota continues to do what they are doing resale values will drop.

Consider this: Most used car buyers never consider a new car, but once these people get wind of all the discounting and how close the price of a 2004 used Corolla is to a new Corolla, the buying patern will shift.

A case example is when last year we had a Toyota Corolla Ascent with 20000km which we sold for $18900. Had the customer checked the new car price they would have been able to buy a new one for about $21000. We payed a good trade-in price on it hence the high resale price in the yard.

[vztrt]

Originally Posted by RATT

Yes it does, now. But if Toyota continues to do what they are doing resale values will drop.

Consider this: Most used car buyers never consider a new car, but once these people get wind of all the discounting and how close the price of a 2004 used Corolla is to a new Corolla, the buying patern will shift.

A case example is when last year we had a Toyota Corolla Ascent with 20000km which we sold for $18900. Had the customer checked the new car price they would have been able to buy a new one for about $21000. We payed a good trade-in price on it hence the high resale price in the yard.

Your right but Ford have done it to. I was looking for a used BA XR6, and found one at a resonable price but i wanted a manual(and this car wasn't). They told me they would have a look for me and I got call later that day and got an XR6 (64km on the clock) cheaper than the used one with 15000km on the clock.

[4.9 EF Futura]

What's new... did Toyota not outsell both Ford and Holden last year anyways? Albeit with a predominantly imported stable...

Wonder if they'll hit their million??

[Fairlane]

Yeh, big car a big country will remain. I dont see the death of the large car yet. Doing long distance trips at 100/110 kmh isnt exactly fun in a corolla.

[MeestaNob!]

I feel sick!

Considering that a new model is coming, Ford (forget the red team) have only themselves to blame. They should have had the run out ads running about 4-6 weeks earlier than they did, get the BAs out the door at a loss or at cost price, and clear the frickin floor.

Also, have 'double-whammy' ads that showcase the Falcon AND the Focus at once. Show the punters what is on offer. And show them why you dont need to buy elsewhere (and maybe attract a few new buyers).

But what would I know, I'm only a customer who drives their products.

EDIT: Before everyone jumps on me, I must publicly acknowledge Toyotas begain basement deals on new Toyotas, as well as their popularity with fleet buyers.
That said though, no one is buying a Corrolla as a fleet car. Ever. These a deals for bargain hunters. Get the hint local boys (Ford & Holden).

[vztrt]

If there was a shift to smaller cars I can see why the corolla won. I been in one and the room in the back is impressive for a small car.
Still I would never touch a small car, I like big sedans.
Petrol will go down and Big sedans will sell again.

Funny how the Camry has a four cylinder motor verson and it didn't sell to well seeing that it's a big car. (I use to drive the first of the wide body models and it had more room than the commodore).

[AU-MUSTD]

You guys reckon good quality and customer service would have anything to do with it??? I know of a lot of people moving away from ford and holden because of poor quality and more importantly the after sales service when there is a fault. It takes a while but it catches up with you.

[Dave_au]

Originally Posted by AU-MUSTD

You guys reckon good quality and customer service would have anything to do with it???

Well I'd definatley say if you want a car that's built right the first time, instead of warranty services, buy a Toyota.

[SSbaby]

Originally Posted by Dave_au

Well I'd definatley say if you want a car that's built right the first time, instead of warranty services, buy a Toyota.

Well I think the fact that Toyota doesn't really make any powerful vehicles has a lot to do with their 'reliability'. It's really a safe strategy to stick to developing 4 cylinder FWDs especially for their bottom line.

Now if Toyota really had the best interests of the enthusiast at heart, they would develop affordable, RWD V8s... and then see their warranty issues skyrocket!

[Dave_au]

Originally Posted by SSbaby

Well I think the fact that Toyota doesn't really make any powerful vehicles has a lot to do with their 'reliability'.

I don't think so - I know what you mean though, Toyota isn't likely to have clutch issues in their 550NM turboed sedan, they don't have one. But then if you say its okay for FPV to have a warranty recall because it's such a powerful car, then you would have to question the entire quality control over the product.

If you consider that say, for the equivalent cost of an FPV or HSV in Australia, is probably equal to, cost of living wise, the cost of a BMW M, Audi S or AMG d in Germany, then I guess the issue comes down to how much each manufacturer is willing to spend on development costs and quality control measures. I get a sneaking suspicion that in Australia, a lot of the quality control is done by the end user.

But the build quality of a Camry for instance is better than any other Australian built car on the road - and I'm talking about panel fit, rattles, NVH and all those small issues that drive us all nutts with our Magnas/Commodores/Falcons, and the reliability of the 100 series cruisers and the 75 series are second to none.

[SSbaby]

Originally Posted by Dave_au

I don't think so - I know what you mean though, Toyota isn't likely to have clutch issues in their 550NM turboed sedan, they don't have one. But then if you say its okay for FPV to have a warranty recall because it's such a powerful car, then you would have to question the entire quality control over the product.

If you consider that say, for the equivalent cost of an FPV or HSV in Australia, is probably equal to, cost of living wise, the cost of a BMW M, Audi S or AMG d in Germany, then I guess the issue comes down to how much each manufacturer is willing to spend on development costs and quality control measures. I get a sneaking suspicion that in Australia, a lot of the quality control is done by the end user.

But the build quality of a Camry for instance is better than any other Australian built car on the road - and I'm talking about panel fit, rattles, NVH and all those small issues that drive us all nutts with our Magnas/Commodores/Falcons, and the reliability of the 100 series cruisers and the 75 series are second to none.

No, but I stressed the point 'affordable'. How many have quality issues with their Astra or Focus?

Look no further than FPV. They're putting in some very nice clutches... the AP twin plate clutch is one of the best units on the market... it comes at a price though... and that means Lexus territory.

I don't think there is much difference in quality as far as fit and finish and general panel fit is concerned. The Japanese were ahead of the game but the other car makers have caught up, IMO. There's still some paint quality issues wrt Aussie manufactured cars that I read about but that's improving... Squeaks and rattles? Maybe you should have a ride in my wife's 2004 built Toyota Camry. Inferior in that regard to my solid SS.

Another factor to consider is that the Japanese make world cars. They can ammortise the cost of components over hundreds of thousands/millions of vehicles. That's something that genuine Aussie manufacturers like Ford and Holden (who build unique cars for each region) don't have the luxury of.

Don't forget, once Japanese products were considered inferior quality to Aussie made. Take a look at the Koreans. They're taking the same slowly, slowly approach to profitability... the same approach that is bringing considerable wealth to Japanese companies. What I'm saying is that, for starters, they take the cheap approach, build up their bottom line and slowly improve the quality... and build the reputation.

[Homer1]

Originally Posted by SSbaby

Well I think the fact that Toyota doesn't really make any powerful vehicles has a lot to do with their 'reliability'. It's really a safe strategy to stick to developing 4 cylinder FWDs especially for their bottom line.

Now if Toyota really had the best interests of the enthusiast at heart, they would develop affordable, RWD V8s... and then see their warranty issues skyrocket!

Lexus have RWD V8s in thier range and are still regarded as the best built cars in the world.

[SSbaby]

Originally Posted by Homer1

Lexus have RWD V8s in thier range and are still regarded as the best built cars in the world.

You see, Lexus owners mod their cars less than Statesman owners... and therefore the stock car is OK for that application.

What I'm referring to is the enthusiast who takes his Commodore/Falcon and upgrades the engine and takes his car to the track...

[Steffo]

Originally Posted by Homer1

Lexus have RWD V8s in thier range and are still regarded as the best built cars in the world.

By who?

[vztrt]

Originally Posted by AU-MUSTD

You guys reckon good quality and customer service would have anything to do with it??? I know of a lot of people moving away from ford and holden because of poor quality and more importantly the after sales service when there is a fault. It takes a while but it catches up with you.

I just got a call today from the dealership (Courtney and Patterson) asking if I was happy about the service I had. I also got one after I bought the car asking how it was and to remind me that my 3000km courtasy service was coming up. These are small things that make good customer service, they dont have to blow smoke up my a**, but so far I'm quite happy with the car and the level of service I have recieved. I will go back when I purchase my next car in the future.

You've hit the nail on the head SSBaby.

They are not taking those kind of risks. Toyota may as well be a whitegoods company. Also Toyota is good at putting cars together, they don't necessarily use the best materials. I haven't seen them get critisized about the fact that they use a live axle rear end for the Prado. Whereas Ford always get's the backsides kicked about anything that's remotely not quite what the media expected.

[4.9 EF Futura]

Yes but if you expect the same quality as a BMW from a Falcon then expect to pay BMW prices. Im sure it's a valid business case for FoMoCO Australia - build the cars to a certain standard and make them affordable to as many people as possible... then fix/replace/whatever under warranty from there.

As opposed to increasing the level of quality and pricing themselves out of the target market. It might not sound "right" - but it means more falcons are more affordable for more australians. A few customers get burnt in the process. It's a tough game.

[The Mighty Red]

Surely the fact that a new model falcon is on the way would slow new car sales.

Different strokes for different folks. That's what it is. I don't see many, if any at all, modified Camrys or even the latest Corolla. The owners are not enthusiasts and do not put their cars through abuse. So therefore a standard Camry SHOULD be more relaible than an XR or SS.

Why is it that there is no Camry or Avalon for that matter, that Toyota lovers aspire to buy? Yes there is a supercharged Camry on its way with a balltearing 185kw! Wow! They will not last if they are moded or abused full stop.