Strong sales of small cars have helped the automotive industry to an encouraging sales result in the first half of 2006.

Official VFACTS figures released last week by the Federal Chamber of Automotive Industries show that in the six months to June, a total of 483,160 motor vehicles were sold in Australia.

The total, down just 3.4 percent on the record for the half set last year, has been achieved despite record fuel prices and an interest rate rise.

"The result demonstrates the considerable underlying strength of the economy and in particular the confidence of the business community," said the Chief Executive of the Federal Chamber of Automotive Industries, Peter Sturrock.

"Consumers seem to have shrugged off the interest rate rise and business vehicle buyers responded extremely well to the end of the financial year offers from the brands."

Sales of Light and Small cars finished the first half with solid June results.

Light car sales were up 9,298 vehicles or 19.6 % for the first six months compared with 2005.

Small car sales rose 2,994 vehicles or 2.8% for the period over last year.

"The June results were a continuation of the strong trend towards smaller cars which has been evident for more than a year, and has clearly been accelerated by the recent substantial increase in fuel prices," said Peter Sturrock.

"In broad terms, consumers remain enthusiastic about new car purchases, although clearly they are making different choices within the market."

The FCAI believes passenger car sales will be boosted in the second half of the year. The launch of several new passenger cars, including the new generation Holden Commodore, is expected to stimulate demand.

"We think there are lots of potential buyers – both private and commercial - who have been sitting out of the market awaiting these cars and the result will be a noticeable spike in sales towards the end of the year," said Mr Sturrock.

Suzuki sales increased 29.5% (June 2006 against June 2005) Suzuki Swift pictured above

The Federal Chamber of Automotive Industries issues the following summary for the retail sales performance of the automotive industry for June 2006, based on the industry's standard retail report, VFACTS.

The Federal Chamber of Automotive Industries advises that the forecast for 2006 is 980,000 vehicles.

• The June 2006 industry volume of 96,448, is down, 5,697 vehicles or 5.6% on June 2005. June 2006 (25.0) had the same number of selling days as June (25.) 2005, resulting in a decrease of 227.9 vehicles per day.
• The June 2006 market is up 12,991 (15.6%) on May (83,457 vehicles). June (25.) had 1.7 selling days less than May (22.0), resulting in an increase of 732.2 vehicles per day or 23.4%. The June volume equates to a SAAR of 0.966 Million vehicle sales.
• The Passenger Vehicle Market fell by 3,755 vehicle sales (-6.2%) over the same month last year, the Sports Utility Vehicle Market, fell by 238 vehicle sales (-1.3%), the Light Truck Market, fell by 1,603 vehicle sales (-8.%) and the Heavy Commercial Vehicle Market fell by 101 vehicle sales (3.3%) over June 2005.
• Toyota was market leader in June, followed by Holden and Ford. Year-to-date Toyota leads Holden with a margin of 3,220 vehicle sales, or 6.3 market share points.

Peugeot sales increased 17.6% (June 2006 against June 2005) Peugeot 307 CC pictured above

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