Car Makers and Importers Launch Biggest New Car Discounting War in Years

The Australian car market is gearing up for a major showdown in 1995, with sales projected to reach 615,000 to 618,000 units, the third best total in history. As interest rates climb and consumer confidence wavers, the industry is turning to "do deals" to retain market share. With more than 60 new car models launched in 1994 and new badges from Spanish and Korean manufacturers entering the market, the competition is intense.

Key Takeaways:

• The Australian car market is expected to record its third best sales total in history, with 615,000 to 618,000 units projected for 1995.
• The industry is shifting from a battle for volume to retaining market share as interest rates climb and consumer confidence wavers.
• More than 60 new car models were launched in 1994, including new badges from Spanish and Korean manufacturers.
• The traditional six-cylinder large family cars remain the strength of the market, but the ratio of imports is growing, particularly in the new small-car segment.
• Toyota Australia is under pressure due to not having a small car on the market, while Ford has already fired the starting gun in the discount war.
• Toyota will respond with aggressive marketing and spending to protect its market share, particularly for its Corolla model.
• Mitsubishi will lift Magna prices by 1% in January, while Ford is expected to announce similar price rises for its Falcon and Fairmont range.
• Holden's Commodore remains the top-selling passenger car in Australia, partly due to its 2.5% price rise in 1994.

Statistics:

• 615,000 to 618,000 new vehicles are projected to be sold in Australia in 1995.
• The new small-car segment has swelled to eight makers, jammed into the $13,000 to $16,000 market.
• More than 60 new car models were launched in 1994.
• The ratio of imports in the new small-car segment is growing.
• Toyota Australia's Camry production will be moved to Altona from Port Melbourne in the holiday break, with a target of achieving one-third of the new plant's total production for export.

Sources:

• Byline: Bill Tuckey
• Automotive industry sources (no specific publication mentioned)