Key Headlights – March 2015

• Vehicle sales were up 2.7% in July and up 3.2% CYTD• Five of the last seven months sales nationally have been up compared to 2014 sales• Tasmania and New South Wales had the largest increase in sales up 11.0% and 6.1%

respectively compared to July 2014• Western Australia and the Northern Territory had the largest decrease in sales with falls of

12.7% and 8.4% respectively• Passenger market fell 4.7% while the SUV market has risen 13.4%• The largest % falls in the Top 20 brands were Jeep (down 26.4%), Holden (down 12.2%)

and Nissan (down 9.4%) compared to July 2014• The largest % increases in the Top 20 brands were Lexus (up 75.5%), Renault (up 32.0%)

and Volkswagen (up 23.0%) compared to July 2014• The Top 10 brands combined vehicle sales increased 2.0% whilst brands 11 to 20

combined vehicle sales increased 10.1%• Locally manufactured vehicles fell 8.4%• Private buyers have risen 6.2%, while rental buyers fell 24.9% compared to July 2014• Top three vehicles sold in July were Toyota Corolla (3,573 vehicles), Mazda 3 (2,825

vehicles) and Hyundai i30 (2,750 vehicles)

Automotive DashboardWelcome to the July 2015 Monthly Dashboard. Internationally, Grant Thornton member firms are leaders in the automotive supply chain and dealership advice, with specialist teams across the globe dedicated to this industry.In this Dashboard, we preview July 2015 results and YTD results.

Key Headlights – July 2015

Table 1 – Top 10 brand sales for July 2015 and CYTD

Brand Month sales CYTD sales

Standing Brand Movement July 2015 July 2014 Movement 2015 2014

1 Toyota J 16,840 16,486 J 118,554 117,591

2 Mazda J 9,356 8,048 J 65,947 59,958

3 Holden 7,895 8,990 59,632 65,763

4 Hyundai J 8,511 8,351 J 58,610 57,948

5 Mitsubishi J 5,189 5,042 J 41,055 37,718

6 Ford 5,747 6,210 40,557 48,452

7 Nissan 4,937 5,451 37,887 38,606

8 Volkswagen J 4,908 3,991 J 36,928 32,562

9 Subaru J 3,354 3,121 J 25,013 23,161

10 Honda J 3,047 2,708 J 23,649 18,151

Source: Vfacts

Automotive Dealerships 2

Vehicle sales increased 2.7% (2,443 vehicles) for July 2015 compared to July 2014, and are up 3.2% (20,920 vehicles) current year to-date. There were a total of 92,308 sales for July 2015 making it the largest July on record. Outlined in Figure 1 are the state based movements for July and CYTD. Figure 2 details the market share by state.

Positive

Negative

July results

1.6% 2.

6%

6.1%

6.0%

-8.4

%0%

5.3%

5.3%

-4.7

%

11.0

%8.

8%

4.1%4.6%

-1.5

%

-9.0

%

2.7% 3.2%

ACT NSW NT QLD SA TAS VIC WA NAT

July Movement

CYTD Movement

Source: Vfacts

-12.

7%

Source: Vfacts

1.6%1.6%

0.9%

NSW VICQLDWA SAACTTASNT

32.9%

20.3%

9.0%

5.7%

28.1%

Sales across the larger market share states once again showed strong growth with New South Wales (up 6.1%), Victoria (up 4.6%) and Queensland (up 5.3%). Western Australia had the largest fall of the month down 12.7% for July (1,215 vehicles) and down 9.0% CYTD (6,190 vehicles). All state based sales for the 2015 calendar year other than Western Australia and South Australia have risen compared to 2014.

Figure 1 – State based movements for July and CYTD Figure 2 – Market share by state

Table 2 – Sales figures August 2014 to July 2015 outlines the last twelve months’ movements. Sales nationally have experienced positive growth in five of the last seven months, however the Western Australian market has fallen every month this past year-to-date.

Table 2 – Sales figures August 2014 – July 2015

AUG-14 SEP-14 OCT-14 NOV-14 DEC-14 JAN-15 FEB-15 MAR-15 APR-15 MAY-15 JUN-15 JUL-15

New South Wales -2.8 5.9 4.6 -0.3 1.0 -1.0 5.1 10.2 2.5 4.1 12.1 6.1

Victoria -4.1 0.9 -1.5 -4.6 1.8 4.3 5.7 8.5 5.0 -3.1 4.1 4.6

Queensland -10.1 2.1 -5.9 -8.5 5.8 -0.5 4.9 12.1 1.7 0.3 10.7 5.3

South Australia -2.0 4.3 -1.8 -5.3 -3.5 -0.8 6.1 -0.4 -1.1 -5.8 -3.3 -4.7

Western Australia -10.2 -2.7 -7.5 -9.6 -11.1 -7.0 -6.1 -2.9 -11.6 -15.8 -7.5 -12.7

National -5.5 2.5 -1.5 -4.8 0.1 -0.2 4.2 8.0 1.2 -1.3 6.4 2.7

Automotive Dealerships 3

17.5

8%

9.78

%

8.94

%

8.66

%

6.20

%

6.02

%

5.7%

5.54

%

3.74

%

3.56

%

Toyota Mazda Holden Hyundai NissanFordMitsubishi Volkswagen HondaSubaru

Market Share

CYTD Movement

Source: Vfacts

0.51

%

0.20

%

0.37

%

-0.2

2%

0.43

%

0.17

%

0.80

%

-1.1

9%

-0.4

7%

-1.5

3%Figure 4 – Movements in key segments

Passenger SUVLight commercialHeavy commercial

Source: Vfacts

44.9%

35.4%

16.9%

2.9%

Figure 3 – Market segments

SegmentationThe market is broken into four key segments being passenger (45%), SUV (35%), light commercial (17%) and heavy commercial (3%) as shown in Figure 3. The movement in the key segments for July and CYTD are detailed in Figure 4. The SUV market has risen a staggering 13.4% from July 2014. Previously the passenger segment accounted for over 60% of the market, now a strong swing towards more versatile vehicles has seen the SUV and Light Commercial segments account for 52% of the market.

BrandToyota lead the market with 17.7% market share followed by Mazda on 9.8% and Holden on 8.9% as detailed in Figure 5. The largest % rises in the Top 10 brands for the CYTD are Honda (up 0.73%), and Mazda (up 0.61%), while Ford and Holden have the largest % falls of 1.41% and 1.23% respectively.

Figure 5 – Market share by brand – Top 10

-3.3

%

-3.4

%

-4.7

%

13.4

%

13.7

%

2.3%

2.8%4.

7%

Passenger SUV Light Commercial Heavy Commercial

July Movement

CYTD Movement

Source: Vfacts

Automotive Dealerships 4

0.8%

21.1

%

8.0%

19.1

%

10.0

%

12.8

%

1.1%

6.2%

-9.3

%

-26.

4%

12.8

%

6.5%

-1.9

%

-2.3

%

8.8%

14.7

%

13.4

%

32.0

%

30.3

%

75.5

%

2.1% 7.

5%

16.3

%

-12.

2%

-16.

3%-9.4

%

2.9%

23.0

%

-7.5

%

12.5

%

Mercedes Kia Jeep BMW Audi SuzukiIsuzu Land RoverRenault Lexus Mercedes Kia Jeep BMW Audi SuzukiIsuzu Land RoverRenault Lexus

Figure 6 – July sales growth by brand – Top 10 demonstrates that seven brands experienced an increase in sales. Volkswagen (up 23.0%) and Mazda (up 16.3%) were biggest movers in the top 10. While Holden and Nissan had the biggest falls of 12.2% and 9.4% respectively.

Figure 6 – July sales growth by brand – Top 10

In relation to the Top 10 brands, on a CYTD basis, seven brands have been able to increase market share compared to the 2014 calandar year. With the Top 10 brands currently accounting for 75.7% of the total market share, 2015 sales have been at record volumes in four of the past seven months.

Figure 8 – CYTD sales movement by brand – Top 10

Whilst seven of the Top 10 experienced increases, nine brands in position 11 to 20 experienced growth as shown in Figure 7 – July sales growth by brand – Top 11-20.

Figure 9 – CYTD sales movement by brand – Top 11-20, shows the significant increase in vehicle sales with nine manufacturers experiencing growing sales.

Figure 9 – CYTD sales movement by brand – Top 11-20

Source: Vfacts

Source: Vfacts

Source: Vfacts

Source: Vfacts

Figure 7 – July sales growth by brand – Top 11 – 20

1.9%

19.5

%

6.9%9.4% 14

.6%

27.7

%

13.0

%

17.0

%

30.4

%

30.3

%

Toyota Mazda Holden Hyundai FordMitsubishi VolkswagenNissan Subaru Honda Toyota Mazda Holden Hyundai FordMitsubishi VolkswagenNissan Subaru Honda

Automotive Dealerships 5

6.2%

4.5%

2.0%

-24.

9%

-8.4

%

4.6%

0.2%

-0.7

%

Private Business Gov’t Rental

July Movement

CYTD Movement

Source: Vfacts

Buyer profileThe market is broken into four key segments being private, business, government and rental. The movement in the buyer profiles for July and CYTD are detailed in Figure 10. Private and business buyers have risen 6.2% and 4.5% respectively compared to July 2014, while rental buyers fell a staggering 24.9%.

Figure 10 – Buyer profile areas

Outlined below in Table 3 is the Top 10 vehicle sales for July 2015 and CYTD by model.

Brand Month sales CYTD sales

Standing Brand Movement July 2015 July 2014 Movement 2015 2014

1 Toyota Corolla 3,573 3,800 25,323 25,966

2 Mazda3 2,825 3,421 23,252 25,945

3 Hyundai i30 J 2,750 2,434 J 18,551 18,126

4 Holden Commodore 2,030 2,469 15,799 18,824

5 Toyota Hilux 4X4 1,988 2,356 15,022 16,099

6 Mazda CX-5 J 2,223 1,895 J 14,712 12,901

7 Volkswagen Golf J 1,675 1,352 J 13,504 11,876

8 Mitsubishi Triton 4X4 J 1,926 878 J 13,396 10,325

9 Ford Ranger 4x4 J 1,616 1,498 J 12,821 11,843

10 Toyota Camry (4 Cyl) J 2,124 1,805 J 12,550 11,923

Table 3 – Top 10 model sales for July 2015 and CYTD

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For more information about Grant Thornton’s Automotive Dealerships Services, contact:

NationalGraham Killer, National Head of Automotive DealershipsT +61 7 3222 0384E graham.killer@au.gt.com

AdelaideDale Ryan, Partner T +61 8 8372 6535E dale.ryan@au.gt.com

BrisbaneGraham Killer, National Head of Automotive DealershipsT +61 7 3222 0384E graham.killer@au.gt.com

Cairns Gerry Mier, Partner T +61 7 4046 8888 E gerry.mier@au.gt.com

MelbourneMatthew Hingeley, Partner T +61 3 8320 2168E matthew.hingeley@au.gt.com

PerthKim Hayman, Partner T +61 8 9480 2096E kim.hayman@au.gt.com

SydneyBen Matthews, Partner T +61 2 9286 5732E ben.matthews@au.gt.com