This year, it's a small-car world

Fiat 500 Esseesse - cute and comically fast. Photo / Amos Chapple

Sales of new vehicles in New Zealand in April were down 1 per cent on the same month last year, a blip the industry blames on holidays - Easter and school - and a shortage of new cars from Japan.

But overall sales for the first four months of 2011 have been bouyant, up 11 per cent on the same period in 2010. Commercial vehicles, especially, are strong.

Things will change. The full effect of the disruption in Japan is yet to hit New Zealand, says Motor Industry Association CEO Perry Kerr.

"The supply situation is changing daily as the Japanese motor industry takes action to address the component shortages which are affecting production both in Japan and in other markets," he said. "The impact of this on each MIA member will vary and within the short term (the next six months) some model lines and/or individual vehicles may be unavailable."

Kerr expects the impact of the disaster in Japan to take 15,000 new vehicles out of this year's sales in New Zealand, forecast earlier in the year at between 85,000 and 90,000.

Such a hit - roughly a $500 million shortfall - could see 2011 sales slump to 2009 numbers, when the global recession bit deep into New Zealand. Then, 70,000 cars and commercials were sold - roughly 27,000 fewer than 2008 and 34,000 fewer than 2007. The industry bounced back in 2010 to end with sales of around 80,000 units.

Toyota remains the leading brand so far this year, but it has only enough new vehicles to cover the next two months. It is pretty much out of Yaris, Corolla, and hybrid Prius. It has already pulled back on marketing.

The best-selling car in April was the Suzuki Swift with 248 registrations, followed by the Toyota Hilux (210) and the Ford Ranger (207). The Toyota Corolla took fourth place with 149 sales.

There seems no doubt that with the rising price of fuel there will be a continuing move towards more fuel-efficient vehicles, like the small Swift.

Research says that people, regardless of their wealth, don't want to drive gas-guzzlers these days. It has nothing to do with their ability to pay - it simply doesn't make a lot of sense.