Motor Market Remains Flat Amid Currency Fluctuations

Strategic Insights -

The Australian motor market experienced a sluggish performance in 1993, with sales growing by an estimated 1.6 per cent. The market's slow growth can be attributed to the appreciating Japanese yen, which led to significant price hikes for motor vehicles. Toyota, Australia's top-selling brand, invested $15 million to maintain its market position, while Ford and General Motors-Holden's Automotive engaged in a fierce battle to outsell each other. The Commodore and Falcon were both vying for the top spot, with Holden running out of vehicles and Ford being forced to sell its four-cylinder models at discounted prices to avoid losing market share.

Key Takeaways:

  • The Australian motor market grew by an estimated 1.6 per cent in 1993, a sluggish performance compared to previous years.
  • The appreciating Japanese yen was the primary cause of the market's slow growth, leading to a quarter increase in motor vehicle prices.
  • Toyota invested $15 million to maintain its market position as Australia's top-selling brand.
  • Ford and General Motors-Holden's Automotive engaged in a fierce battle to outsell each other, with the Commodore and Falcon competing for the top spot.
  • Holden ran out of vehicles by the end of 1993, while Ford was forced to sell its four-cylinder models at discounted prices to avoid losing market share.
  • European cars, such as Renault and Peugeot, performed well in the market due to careful pricing strategies.
  • Korean makers, such as Hyundai, did well in the market, with prices for their vehicles not being significantly affected by the appreciating yen.
  • Toyota's locally made Camry saw a 2.5 per cent price increase due to the yen's effect on imported engine-transmission parts.
  • Ford's Laser saw a 2 per cent price increase due to the cost of Mazda mechanical parts and transmission.
  • Importers like Nissan Australia and Honda faced further price rises to recover costs in 1994.

Statistics:

  • Estimated growth of the Australian motor market in 1993: 1.6 per cent
  • Price increase due to the appreciating Japanese yen: up to a quarter
  • Toyota's investment to maintain market position: $15 million
  • Price increase of Toyota's locally made Camry: 2.5 per cent
  • Price increase of Ford's Laser: 2 per cent
  • Estimated loss of Mazda Australia for the year to March: $12 million

Sources:

  • [The motor market barely lifted an estimated 1.6 per cent in 1993](Unknown newspaper)
  • [Toyota spent an estimated $15 million to keep its position as Australia's top-selling brand](Unknown newspaper)
  • [Ford was forced to sell its four-cylinder models at discounted prices to avoid losing market share](Unknown newspaper)
  • [The yen's effect on the prices of some Australian-made cars is also considerable](Unknown newspaper)
  • [Toyota does not declare its financial results but is estimated to lose $31 million on manufacturing and to make $32 million on sales in Australia](Unknown newspaper)
  • [The yen's rise also forced Ford to lift its Laser price by two per cent at the weekend](Unknown newspaper)