SUV sales bumped up

Last month's interest rate rise failed to put the brakes on demand for new cars as runaway sales of SUVs powered the August market to yet another record.

Sales of 88,206 vehicles were 8 per cent higher than for the same month last year and took this year's total to nearly 700,000, according to figures released yesterday by the Federal Chamber of Automotive Industries.

Booming demand for SUVs cancelled out passenger car declines, as the market continues to run nearly 9 per cent ahead of last year and charges towards the first calendar year total exceeding one million.

“The million-vehicle market is now a reality and notwithstanding a longer-term reaction to the recent rate rise or other factors, I am confident that the market will continue to comfortably exceed this benchmark through to the end of the year,” FCAI chief executive Andrew McKellar said.

He put the result down to consumer confidence, retail competition and the decline of petrol prices.

Toyota's new Kluger SUV burst out of the blocks, capturing third spot in its segment and pushing medium SUV sales 42per cent higher than in August last year.

Compact and luxury SUVs were also in high demand, with sales up 33 per cent and 23 per cent respectively.

The arrival of new models pushed Jeep sales up 43 per cent over last August and Land Rover, with its new Freelander, enjoyed a 35 per cent lift.

“The strength of the SUV market is the result of new-model activity and the diminished influence of petrol prices on consumer preferences,” Mr McKellar said.

Light car sales dipped 6 per cent, medium cars fell 11 per cent and even the small car segment ran behind the overall market.