We dwell in instances the place gasoline effectivity and affordability are rising priorities. The previous because of local weather change and the latter to a shaky financial state of affairs.
But demand for the market’s most cost-effective and smallest vehicles has collapsed over the previous decade, as consumers flock to higher-riding SUVs.
This in flip has seen manufacturers discontinue their smallest and most cost-effective vehicles at a price of knots, with the variety of Micro and Gentle vehicles on sale dropping from 38 fashions in 2013 to 16 on the finish of 2022.
Accordingly, this lack of maximally inexpensive used vehicles has undoubtedly put upward worth pressures on used vehicles, as consumers on a finances go for pre-owned.
We’ve gone by the gross sales figures from 2013 to now, and mapped the adjustments within the Micro and Gentle Automobile courses, as outlined by trade stats database VFACTS.
We’ve bundled these two courses collectively as a result of, frankly, to a median buyer they quantity to just about the identical factor. A Kia Picanto (Micro) and Toyota Yaris (Gentle) are hardly totally different from each other.
Because the desk exhibits, in 2013 Micro and Gentle Vehicles accounted for 136,300 gross sales, equal to a 12 per cent total share of the Australian new automobile market.
Gross sales and market share have steadily declined in principally linear vogue ever since, hitting their absolute low on the peak of COVID (lower than a 3rd of the 2013 tally).
Even with the small rally since then taken into consideration, on the finish of 2022 the gross sales and market share of Micro and Gentle Vehicles have been barely a 3rd of the 2013 tally.
One key motive for this past altering client sentiment – and till lately low rates of interest – has been the push for automobile manufacturers to suit increasingly more driver-assist and luxurious options into even the most cost effective vehicles, thereby driving up the worth at a larger price than wage development.
As a result of these segments are so cost-sensitive, that hurts. It additionally means consumers would possibly simply chunk the bullet and purchase that larger car as a result of the associated fee distinction over a fee interval actually isn’t all that nice.
Correlation and causation aren’t all the time aligned, however take into account: In 2013 the Small SUV phase had 6.6 per cent market share, from an inventory of 20 fashions. By 2022 this market (now divided into Gentle SUV and Small SUV) accounted for 18.2 per cent share, from a complete of 44 fashions.
So within the timeframe the place Micro/Gentle Automobile share plummeted to a 3rd of their unique dimension, the market share of Gentle/Small SUVs tripled, and the selection of fashions greater than doubled.
Prime-selling Micro Vehicles 2013-22
- Kia Picanto: 31,566 (2016-22)
- Mitsubishi Mirage: 29,740 (2013-22)
- Fiat 500: 12,705 (2013-22)
- Nissan Micra: 9513 (2013-17)
- Holden Spark: 8203 (2013-19)
Prime-selling Gentle Vehicles 2013-22
- Mazda 2: 102,589 (2013-22)
- Toyota Yaris: 95,298 (2013-22)
- Hyundai Accent: 86,390 (2013-20)
- Suzuki Swift: 74,305 (2013-22)
- Kia Rio: 67,256 (2013-22)
- Volkswagen Polo: 59,174 (2013-22)
- Honda Jazz: 55,028 (2013-21)
- MG 3: 41,733 (2017-22)
- Holden Barina: 40,034 (2013-19)
- Hyundai i20: 39,865 (2013-15, 2021-22)
Micro and Gentle Automobile gross sales – a decade of decline
Micro and Gentle automobile gross sales, share and selection tracked
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