Lure of speed and luxury delivers car-sales bounce

The Australian

SPORTS cars and luxury SUVs tempted buyers back into showrooms last month and helped the vehicle market record its second-best month of the year.

Demand fell 3.5 per cent compared with last September, but more than 78,000 vehicles were sold and the industry welcomed a "stronger than expected result".

The 2009 market is still 13 per cent down on last year, however, and the Federal Chamber of Automotive Industries, which released the results yesterday, said the rebound could be undermined by rising interest rates.

"The September figure demonstrates signs of consolidation in the new vehicle market," said FCAI chief executive Andrew McKellar. "Some areas of buyer confidence remain fragile and an interest rate rise is premature."

Both private and business buyers regained an appetite for SUVs, with sales of luxury models surging 31 per cent compared with last September, led by the large off-roaders from BMW, Lexus and Audi. Other premium car categories also did well, especially sports cars under $200,000, with demand up 22 per cent, and mid-size luxury cars led by the BMW 3 Series and Mercedes C-Class.

The best-selling luxury brand, BMW, emerged with its best September figures ever and its third-strongest month in 30 years. Audi remains the fastest-growing premium marque after another strong result put it up 16 per cent for the year.

Even the elite makers benefited, with Bentley recording its best month of the year and signs of encouragement for Aston Martin and Maserati.

At the other end of the market, compact SUVs and light cars were in strong demand and Hyundai cashed in with the best-seller in both segments, accelerating its sales 76 per cent ahead of last September. It continues to be the success story of the year, with growth of 36 per cent.

Among locally built cars, the Toyota Camry soared to easily its best month of the year, with 2360 sold, and the Japanese car giant is preparing for an end-of-year bonanza.

One barometer of business confidence remains in the doldrums, with demand for heavy commercial vehicles falling even further last month and now down by one-third in the year to date.