Korean automaker Hyundai has overtaken the iconic Holden brand in car sales in Australia for the first eight months of 2015, according to an as-of-yet-unreleased preliminary sales figures. The report shows Hyundai ahead of Holden by 600 cars for the year.
The results put Holden at risk of falling outside the top three best-selling automotive brands for the year, something that has never happened in its 67-year history. It would be the first time ever that Hyundai would lead Holden — formerly the best-selling automaker in the country — in the year-to-date sales race. The two automakers have been nearly equal all year long. The news comes as GM-Holden continue to prepare to shut down manufacturing operations in Australia by the end of 2017.
In addition, a confidential dealer bulletin obtained by News Corp Australia has revealed that Hyundai has dramatically increased its sales targets in Australia for the last four months of the year in an effort to compensate for falling demand for new vehicles in China, the world’s biggest market.
“In order to maintain global growth, the challenge has been issued to other countries to offset the issues in China and to search for growth beyond current business plans,” said the confidential bulletin to Hyundai dealers.
To accomplish the newfound plans in Australia, Hyundai is offering an A$5,000 discount on its i30 subcompact hatchback, or A$19,900 drive-away price. The Korean automaker offered the same car at that price in June, instantly making it the best-seller for the month. When the discount was discontinued, sales were cut in half.
Stay tuned as we away official sales figures for August are released on Thursday.
Comments
Your first line defines the problem, Holden is no longer an ‘iconic’ brand.
GM is really on the nose down here and dragging the Holden brand name down with it.
After 2017 I doubt Holden will be lucky to rate at number 8.
Any “Holden” man could have told you this was coming.
Lets also put this into perspective too.
All of Holden sells only as many cars as Chevy builds in Camaro’s in one year. It takes not a large drop in sales to drop on this sales list in country.
Also the RWD car sales have declined for how many years now. Their were better than Ford but still declined over the years as people defected to smaller FWD cars like Mazda and even Hyundai.
I am sure a percentage are pissed off Australians but just a part of the decline not the whole deal.
Also there are so many brands in a country with limited sales. New companies coming has eroded nearly all of the brands including Ford.
There are any factors in play here not just a cherry picked couple. If nothing had changed things were still on a decline.
Hi Scott, thanks for your comment and support.
Yes the total Australian market is small ( < annual Camaro production) so it doesn't take much to lose market percentage…..any small marketing mistake can easily see a drop in market position
RWD car sales are dropping and although Commodore outsells Falcon the segment is in decline.
This is why GM's smaller FWD cars, small SUV's and larger 'pickup's need to be "on target" to meet the changing market.
I agree a small market share drop could be attributed to 'pissed off Australians' but how many can there really be ?
We have seen many 'new brands' enter the market but they are niche players in a small market so they don't sell a lot of volume either.
So if it's not pissed off Aussies and it's not niche Brands then the real reason why GM Holden are losing market share is because the the non-RWD offerings promoted as Holden's do not meet the needs of the market as well as the product offered by improving Brands such as Hyundai
So, as you said it's not just a cherry picked issue such as Commodore ( large RWD) decline but a much broader and deeper problem at play here.
The 'value' or 'iconic' ness of the Holden brand has been diminished through poor promotion of a poor range of emergent platforms ( ie FWD, SUV's etc ) that have failed to capture market share in the growing segments over the past 2-5-10 years and therefore Holden is no longer an iconic brand.
I am saddened to watch the demise if this once great Brand.
Tony I agree with much of what you said.
I do not agree that the GM cars are not as good as the others.
While some like the Cruze and Malibu are do for replacement the new models are as good as any fwd offering.
Keep in mind out versions are not all that different and we know what they are like.
Your top seller the Mazda three is not a bad car but not the best either.
Hi Scott,
I’m pretty sure the GM vehicles we get May be similar to yours but much lower specced. Plastic trim, leather , carpet and sound deadening all generally lower quality than the Japanese offerings.
‘Your’ SS is better kitted out and cheaper the the same car here – how does that work ??
If GM offered US spec at US prices they would have lines at the door !
Look at your comments re the new Camaro and it’s pricing.
I’d have an SS COnvertable in my driveway tomorrow if I could buy it at US pricing.
Did you see Mustang waiting list in Aust is out to late 2016 and car has not been released yet ?
Local GM marketing have been caught flat footed. Watch Hyundai very closely.
The changes that are coming will tell us where GM is going here.
The Buick, Holden and Opel connection will bring some suprises to all of us.
Thank you for the big picture view of things there. Most just rant you give info.
Austria is a small but wealthy, first world market that earns The General greater profits than Brazil in Oz and that is why it matters.
Holden has failed to offer the best in a very tight, jam packed market, and is now paying a substancial price.
As for Mazda 3, it really is a fantastic little car and, like most Mazda products, leads it’s segment. I wish Mazda had more strength in the US market as opposed to Honda and Toyota.
100% correct decision for GM to shutdown manufacturing in Australia. If Australians can’t support their companies, then their companies shouldn’t support them. In fact, GM should had done it sooner.
That’s a crock!
Holden wasn’t loosing money manufacturing. This is a case of Indian and Chinese workers accepting lower income.
Are you suggesting Australian labor greedy for not accepting Indian pay?
Maybe Oz should abandon environment standards and compete with cancerous China?
Maybe we should do the same in America?
It may not be “Iconic” any longer, but Holden is Australia’s own brand, it was started there and as far as I know basically only sold there, ever. This makes the shuttering of all Holden auto production there much more bitter. It’s different than Ford. Ford is an American company that set up shop as Ford of Australia in the 1920’s.
In the long run, I tend to think that GM may be better suited to just eliminate Holden completely rather than just import all re-badged vehicles? If it’s a Chevy Cruze, then sell it as a Chevy Cruze, not a Holden Cruze.
It may be Australia’s brand, but it has been owned by an American company for nearly 100 years. How many decades have they been rebranding cars? I agree though, if the Ute and whatever the other is can sell enough units, keep the brand alive, but call a Chevy a Chevy.
@LFX323HP
– Holden also sells in New Zealand and several territories in the Pacific Ocean.
Holden also produces and produced cars sold under other brands in other countries, like Chevrolet in South Africa, Arabia and the United States of America, or as Opel in Japan.
I think the market is reflecting Australians attitude towards Holden. The non commodore range is lackluster and consumers are not mugs. GM needs to lift their game really fast or the market will move past and the brand will have no foothold/presence. We need some better executed product sooner than later!
Interesting debate guys, but you’re over thinking it. Essentially, READ Chris’ article! PRICE, PRICE, PRICE!! When Hyundai offer $5000 incentives to buy their cars, they win the segment, when the offer is discontinued, the sales halve. Hyundai don’t care if they lose a bit of cash in Australia’s tiny market, as they make huge money elsewhere. Most Australians are fickle and buy on price and only a few buy on quality. In my new “post Holden” life, it’s interesting what people expect from their value packed cheap imported cars and how disappointed they are when they don’t get it.
I think a factor that fails to get mentioned in conversations like these is also the dramatic rise in the cost of living here in Australia over the last 5 years while our wages have not increased. Most people are now switching to the cheapest cars they can buy both in sticker price and fuel consumption. GM should have noticed this and brought in quality cars to compete and retain market share, its a damn shame that things have turned out the way they have. Makes me want to move to New Zealand and live of fush and chups 🙂