We stay in occasions the place gasoline effectivity and affordability are rising priorities. The previous on account of local weather change and the latter to a shaky financial scenario.
But demand for the market’s least expensive and smallest vehicles has collapsed over the previous decade, as patrons flock to higher-riding SUVs.
This in flip has seen manufacturers discontinue their smallest and least expensive vehicles at a charge of knots, with the variety of Micro and Mild vehicles on sale dropping from 38 fashions in 2013 to 16 on the finish of 2022.
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Accordingly, this lack of maximally reasonably priced used vehicles has undoubtedly put upward worth pressures on used vehicles, as patrons on a finances choose ​​for pre-owned.
We have gone by the gross sales figures from 2013 to now, and mapped the modifications within the Micro and Mild Automotive lessons, as outlined by business stats database VFACTS.
We have bundled these two lessons collectively as a result of, frankly, to a median buyer they quantity to just about the identical factor. The Kia Picanto (Micro) and Toyota Yaris (Mild) are hardly totally different from one another.
Because the desk reveals, in 2013 Micro and Mild Vehicles accounted for 136,300 gross sales, equal to a 12 % total share of the Australian new automotive market.
Gross sales and market share have steadily declined in largely linear vogue ever since, hitting their absolute low on the peak of COVID (lower than a 3rd of the 2013 tally).
Even with the small rally since then taken under consideration, on the finish of 2022 the gross sales and market share of Micro and Mild Vehicles had been barely a 3rd of the 2013 tally.
One key motive for this past altering client sentiment – ​​and till just lately low rates of interest – has been the push for automotive manufacturers to suit increasingly more driver-assist and luxurious options into even the most cost effective vehicles, thereby driving up the value at a larger charge than wage development.
As a result of these segments are so cost-sensitive, that hurts. It additionally means patrons may simply chew the bullet and purchase that larger car as a result of the price distinction over a cost interval actually is not all that nice.
Correlation and causation aren’t all the time aligned, however take into account: In 2013 the Small SUV phase had 6.6 % market share, from a listing of 20 fashions. By 2022 this market (now divided into Mild SUV and Small SUV) accounted for 18.2 % share, from a complete of 44 fashions.
So within the timeframe the place Micro/Mild Automotive share plummeted to a 3rd of their authentic measurement, the market share of Mild/Small SUVs tripled, and the selection of fashions greater than doubled.
High-selling Micro Vehicles 2013-22
- Kia Picanto: 31,566 (2016-22)
- Mitsubishi Mirage: 29,740 (2013-22)
- Fiat 500: 12,705 (2013-22)
- Nissan Micra: 9513 (2013-17)
- Holden Spark: 8203 (2013-19)
High-selling Mild Vehicles 2013-22
- Mazda 2: 102,589 (2013-22)
- Toyota Yaris: 95,298 (2013-22)
- Hyundai Accent: 86,390 (2013-20)
- Suzuki Swift: 74,305 (2013-22)
- Kia Rio: 67,256 (2013-22)
- Volkswagen Polo: 59,174 (2013-22)
- Honda Jazz: 55,028 (2013-21)
- MG 3: 41,733 (2017-22)
- Holden Barina: 40,034 (2013-19)
- Hyundai i20: 39,865 (2013-15, 2021-22)
Micro and Mild Automotive gross sales – a decade of decline
Micro and Mild automotive gross sales, share and selection tracked
