A record May result should make a small dent in the massive new car order pipelines and provide some joy to patient Fleet Managers. It should also release some stock into the used car market where prices have remained strong despite recent softening.
While the industry will celebrate the achievement of 105,694 new vehicle deliveries in May, its important to remember that most of these cars were ordered in 2022 before the economy started to slow from the impact of continuous interest rate rises. In the coming months, it’s likely that manufacturers will turn to the fleet sales team to fill the void left by declining retail sales.
This result is a 12.0% increase on the same month last year and represents a 2.7% on May 2017 which was the previous best May result. Total deliveries in 2023 are also higher than last year (4.3%) with 456,833 new cars hitting the roads.
Delivery increases were recorded in all buyer type market segments – Private, Business, Government and Rental – compared with May 2022.
FCAI Chief Executive Tony Weber said the result was encouraging following many months where deliveries were hampered by shipping and logistics issues.
“This result is a signal that we are starting to see some improvement in supply,” Mr Weber said. “However, not all issues are resolved, and our members continue to work with their customers to improve vehicle delivery times.”
Mr Weber added that while vehicle supply issues might be beginning to ease, the industry remained cautious around broader economic conditions and their potential impact on demand.
“A large proportion of vehicles delivered this month would have been ordered during 2022,” he said. “Since then, we have seen a shift in economic conditions with a focus on rising cost pressures for households and businesses. Nevertheless, reports from our members indicate that demand remains firm.”
Sales of Battery Electric Vehicles were 7.7% of the market in May and are running at 7% year to date. Sales for electrified vehicles (Battery Electric Vehicle, Plug-In Hybrid and Hybrid) made up 15.6% the market in May.
Toyota (18,340) was the market leader in May followed by Mazda (8,475), Hyundai (7,078), Kia (7,000) and Ford (6,251).
The top five vehicles in May were:
- Toyota Hi-Lux (5,772)
- Ford Ranger (4,110)
- Tesla Model Y (3,178)
- Toyota RAV4 (2,616)
- MG ZS (2,502)
