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December issue out now

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DECEMBER 2022

THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR 35 YEARS

‘Turbulent’ times hit used-imports sector

Rising competition and prices for wholesale stock in Japan creating concerns for many parts of the automotive market

T

he motor-vehicle industry is facing many challenges worldwide, and these are largely being underpinned by the insufficient throughput of new-car production and supply to the Japanese and European franchise markets. That’s the view of Simon Beirne, managing director of Christchurchbased SBL International Vehicle Brokering. He points out New Zealand has historically relied on good-quality Japanese vehicles to complement our fleet. “The Japanese new-car franchises feed auction houses their excess stock, but in the current climate it simply doesn’t exist. We now find more Japanese consumers are turning to second-hand vehicles, which in turn is impacting on availability and prices when accessing them for New Zealand. “Good quality used vehicles are now in high demand for dealers in Japan and we are competing against them like never before to secure stock.

Celebrations at finance awards p14

Ranger wins NZ Car of the Year An insufficient supply of new vehicles in Japan is putting increased demand on used exports

“The 2014-2020 window is where a lot of our dealers’ interest is at and that’s where the Japanese domestic market also sits. In addition, there’s not so much diversity when it comes to available models, even for consumers in Japan.” Because new-vehicle production has plunged mainly due to the worldwide microchip shortage, franchises in Japan aren’t getting as many trade-ins, and dealers in the domestic market can pay over and above Kiwi importers. Beirne says when it comes to the “sweet spot” of $20,000 to

$40,000 retail, a lot of product exists in Japan. But with many Japanese facing delays of between eight and 18 months for their new vehicle, they are upgrading to those two to four years newer than their current model, which they will then trade when their new car arrives. He adds: “The yen is at a 15-year high with its cross-rate of 86-87 with our dollar, so dealers should be realising strong gross profit. But with the current buying conditions it feels like the rate, relative to success percentages, is in the low to mid-60s.

p24 p26

Meet most powerful Type R Kiwi gets ‘Bahrain job’ done p28

[continued on page 4]

GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - SINGAPORE


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