05/07/2021 - 15:00

MG leads car sales growth

05/07/2021 - 15:00

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Sales of MG cars have rocketed higher this year, pushing the famous marque into the state’s top 10, though the Chinese manufacturer is very different from the MG of old.

MG leads car sales growth
John Hughes says the popularity of MGs is based on price and value.

Sales of MG cars have rocketed higher this year, pushing the famous marque into the state’s top 10, though the Chinese manufacturer is very different from the MG of old.

A total of 1,575 MG cars were sold in Western Australia in the six months to June 30, up 362 per cent on the previous corresponding period.

That pushed MG into the state’s top 10 marques and highlighted the rapid revival on the brand.

Best known as a British manufacturer of open two-seater sports cars, MG is now owned by giant state-owned Chinese company SAIC Motor Corporation.

Its biggest selling models have been light hatchbacks and SUVs.

The only marque with higher sales growth in WA was LDV, which is also Chinese owned.

LDV, which was coming off a much smaller base, lifted half-year sales by 501 per cent to 452.

A third Chinese manufacturer, GWM, lifted its half-year sales by 99 per cent to 535.

John Hughes Group is the sole dealer for MGs in WA though founder John Hughes expects that will soon change.

He said the popularity of MGs was based on price and value.

“You get a brand new vehicle with a seven-year warranty at a pre-owned vehicle price,” he said.

Mr Hughes said there was some initial reluctance to Chinese vehicles but that was compensated by the warranty.

The latest VFACTS data confirmed the strong recovery in overall car sales in WA.

Sales in June were up 3.2 per cent to 10,037.

More tellingly, sales in the half year to June were up 39.4 per cent – the fastest growth of any state – to a total of 56,256 vehicles.

Toyota continued to be the dominant marque in WA and nationally, though its market share has dropped.

Its WA sales increased 23.5 per cent to 14,539 for the half year.

Other popular marques in WA included Mitsubishi (5,063), Mazda (4,814) and Hyundai (3,912).

In a research note, CommSec said national car sales totalled 110,664 units in June, the most in two years.

“Aussie car dealer margins remain solid, supported by strong consumer demand, despite supply challenges,” CommSec said.

This was reflected in share price gains by ASX-listed auto stocks.

National car dealer Eagers Automotive, which bought Perth-based competitor Automotive Holdings Group, was the 10th strongest performing company on the ASX 200 index last financial year.

Over the year to June 2021, Eagers’ shares rose by 149.7 per cent.

Shares of motor vehicle accessories company ARB Corporation were 145.9 per cent higher and automotive parts company Bapcor’s shares were up by 47.9 per cent. 

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