Car sales dive in July but still on track for record year

Car sales fell in July compared with June but are still strong for the year. Photo/supplied

New vehicle sales are down significantly in July following a strong month in June, but the industry is still on track for a record year.

The latest statistics from the Motor Industry Association show new vehicle registrations in New Zealand were 11,631 in July - 4,354 less than the previous month.

Compared with the same month in 2016 however, sales were up 0.5 per cent.

"Following the all-time record month of June, the July results were a little more modest but still consistent with the long-term trend of strong monthly sales," said MIA chief executive David Crawford.

Passenger car and SUV registrations slipped 1 per cent to 7,605, while commercial vehicle registrations rose 4.3 per cent to 4,026.

Motor vehicle registrations in the first seven months of this year are 13 per cent ahead of the same period last year at 90,737.

That suggests vehicle sales may be headed for a fourth straight annual record this year as the economy is buoyed by low interest rates and record migration and tourism.

"Continued strong net immigration, robust New Zealand dollar and a sturdy local economy remain the key drivers to healthy new vehicle registrations," Carwford said.

Japanese car maker Toyota remained the market leader in July, with a 16 per cent market share, followed by Ford on 10 per cent and Mazda at 9 per cent, the MIA said.