Booming sales of small cars have boosted the Australian new car market to near-record levels in July.

According the VFACTS figures released yesterday by the Federal Chamber of Automotive Industries (FCAI), a total of 78,299 cars, trucks and buses were sold last month, up 1.6 percent on July 2004 and only 1,292 less than the July record set in 2003.

"The July result has alleviated any industry concerns that the all-time monthly record set in June was the result of a pull-through in demand caused by end-of-financial-year sales," said the Chief Executive of the FCAI, Peter Sturrock.

Mr Sturrock said demand for vehicles in the year to July was running at 4.9 per cent – slightly down on last year’s annual gain for the same period of 5.5 per cent.

"The slight softening is more a result of the massive June sales when 101,907 vehicles were bought in just 25 days," Mr Sturrock said.

"The result confirms the underlying strength of the new car market which is clearly headed for another substantial new annual sales record."

A record total of 955,229 vehicles were sold in 2004 and the FCAI has forecast the market will reach 980,000 this year.

Demand for cars in the 'small' segment was up 26.0 per cent month-on-month, while the 'medium' car segment was up 8.1 per cent.

At the same time, sales of 'sports utility vehicles' were down 5.0 per cent and 'large' cars down 13.3 per cent on July 2004.

"The results clearly point to a growing consumer trend towards more fuel-efficient vehicles, although it should be pointed out that, year-to-date, sales of SUVs are actually up 7.7 per cent," said Mr Sturrock.

According to the FCAI, motor vehicle retailers are preparing for a strong five-month push.

"Most importers have now forward-ordered to the end of the year in anticipation of record sales so their vehicles are in the pipeline," said Peter Sturrock.

"The bases are loaded for a major sales thrust."

Toyota was the top-selling brand in July with 16,415 or 21.0 per cent share of the market, ahead of Holden with 14,050 (17.9 per cent), Ford with 9,338 (11.9 per cent) and Mazda with 5,325 (6.8 per cent).

Honda surged to fifth place in July with 4,593 (5.9 per cent), just 19 vehicles ahead of Mitsubishi with 4,574 (5.8 per cent).

On a year-to-date basis, Toyota continues to lead the market with 114,391 sales, 10,113 vehicles ahead of Holden, with Ford third (76,082).

Mazda is in fourth place, with sales of 39,263 for the year to date, closely followed by Mitsubishi with 38,524.

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