We stay in instances the place gas effectivity and affordability are rising priorities. The former as a result of local weather change and the latter to a shaky financial scenario.
Yet demand for the market’s least expensive and smallest cars 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 cars at a price of knots, with the variety of Micro and Light cars on sale dropping from 38 fashions in 2013 to 16 at the finish of 2022.
Accordingly, this lack of maximally inexpensive used cars has undoubtedly put upward value pressures on used cars, as patrons on a funds go for pre-owned.
We’ve gone by means of the gross sales figures from 2013 to now, and mapped the modifications in the Micro and Light Car lessons, as outlined by business stats database VFACTS.
We’ve bundled these two lessons collectively as a result of, frankly, to a mean buyer they quantity to just about the similar factor. A Kia Picanto (Micro) and Toyota Yaris (Light) are hardly totally different from each other.
As the desk exhibits, in 2013 Micro and Light Cars accounted for 136,300 gross sales, equal to a 12 per cent general share of the Australian new automobile market.
Sales and market share have steadily declined in largely linear trend ever since, hitting their absolute low at the peak of COVID (lower than a 3rd of the 2013 tally).
Even with the small rally since then taken into consideration, at the finish of 2022 the gross sales and market share of Micro and Light Cars had been barely a 3rd of the 2013 tally.
One key purpose for this past altering client sentiment – and till just lately low rates of interest – has been the push for automobile manufacturers to suit increasingly more driver-assist and luxurious options into even the least expensive cars, thereby driving up the value at a better price than wage progress.
Because these segments are so cost-sensitive, that hurts. It additionally means patrons would possibly simply chew the bullet and purchase that greater automobile as a result of the value distinction over a fee interval actually isn’t all that nice.
Correlation and causation aren’t at all times aligned, however take into account: In 2013 the Small SUV phase had 6.6 per cent market share, from a listing of 20 fashions. By 2022 this market (now divided into Light SUV and Small SUV) accounted for 18.2 per cent share, from a complete of 44 fashions.
So in the timeframe the place Micro/Light Car share plummeted to a 3rd of their authentic measurement, the market share of Light/Small SUVs tripled, and the selection of fashions greater than doubled.
Top-selling Micro Cars 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)
Top-selling Light Cars 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 Light Car gross sales – a decade of decline
Micro and Light automobile gross sales, share and selection tracked