Tuesdata: The automotive power player rankings, and the new contenders

Welcome to Tuesdata, where we take a look at various data points across the media and marketing industry and the context behind them. 

The full content of this post is for Unmade’s paying members only. Others will hit the paywall a little lower down.

Today we’re focusing on the Australian automotive industry, using the latest data from VFacts to illustrate the top five manufacturers, their marketing bosses, key agencies and latest campaigns.

We’ll also use that data to discover the most prominent emerging manufacturers, uncovering who is behind their push and what they have done to significantly increase their sales numbers. 

There are a number of ways we could create an emerging manufacturer list. For this example, we’ll use percentage increase in sales figures compared to the previous year to find out who has climbed the most.

To make things more fair, only manufacturers that sold a minimum of 3,000 vehicles in 2021 will be included in the ranking. This is to avoid manufacturers with tiny sales figures making it onto the list by significantly increasing their sales on a percentage basis. For example, Renault performance brand Alpine (yes, the same brand as the F1 team) increased sales 300% in 2021. But that’s because it sold 28 cars in 2021 versus seven in 2020. 

VFacts data is compiled by the Federal Chamber of Automotive Industries, the peak body for Australia’s automotive industry. 

In 2020 it recorded the lowest new vehicle sales since 2003, but 2021 has seen a slight recovery, up 14.5% to 1,049,831.

Top five manufacturers by sales

1. Toyota

CMO: Vin Naidoo

Key agencies: Saatchi & Saatchi, Spark Foundry, BWM Dentsu, Hero 

Toyota continues to lead the Australian market by sales, extending its advantage over Mazda in 2021 by 3,362 sales when compared to 2020. In the top five vehicle models by sales, Toyota featured three times thanks to the Hilux workhorse, Rav4 medium SUV and much-loved Corolla.

That it had three very different vehicles in the top five showed its depth of range in a time where others are culling their model range as sales in some sectors flounder. 

While it’s business as usual on the sales front, it’s all change on the marketing front. In March last year, Toyota handed the majority of its media and creative to Publicis Group, specifically Saatchi & Saatchi and Spark Foundry. It was one of the largest pitches of the year and dealt a significant blow to The Media Store, which had held the media account for more than two decades. 

There has also been change on the personnel front, with Vin Naidoo arriving from Singapore to take up the CMO role. He has previous Australian industry experience at Toyota luxury brand Lexus as head of sales, a role he held from 2013 to 2020. 

He replaces John Pappas, who completes a rare move from CMO to CEO. He’ll be leading the Lexus brand in Australia. 

On the marketing front, Toyota has gone hard on its primary sponsorship of the AFL, while also pushing its heritage in Australia. It brought the jingle back as well as the  ‘Oh what a feeling’ catchphrase in the LandCruiser 300 ad featuring typically Australian activities like fishing and camping while it also pushed its green ambitions with TVCs specifically for the Australian market.

In an industry that likes to rely on global creative, particularly using left-hand drive vehicles, Toyota’s commitment to local campaigns is a significant part of its winning formula. 

2. Mazda

Marketing Director: Alistair Doak

Key agencies: 1Mazda (part of CHEP Network)

Mazda makes it a Japan 1-2 on the sales charts, although it must be getting tired of taking the bridesmaid’s position which it has for a number of years. 

While it has continuity in coming second, it also has continuity in its marketing boss, something which most brands can’t say. Alistair Doak has been with the brand since 2001, first as national public relations manager and then as marketing director from 2007.

Prior to that he was a journalist including motoring editor of The Age and The Australian. 

Mazda has a deep relationship with CHEP Network, which has created bespoke agency 1Mazda specifically for the brand. The long tenures continue within 1Mazda, with Martin Griffin having run 1Mazda since 2012. 

While Mazda’s campaigns don’t have the playfulness or creativity of Toyota, it still tailors the messages for the Australian market and holds on to the ‘Zoom zoom’ tagline. 

As one industry insider mentioned, it has to look over its shoulders at the approaching Korean brands, who have come to the hybrid and electric party earlier than Mazda. While the Australian team may not have control over that, a tight marketing message around the upcoming vehicles could continue to cement second spot on the sales chart. 

3. Hyundai

CMO: Kevin Goult

Key agencies: Innocean Australia, Orchard, Hearts & Science 

Hyundai is in an all-out assault on the Australian market, with cars in the majority of categories and a solid step into the hybrid and electric vehicle market as well. The marketing team in Australia, led by ex-Audi marketer Kevin Goult, has taken the opportunity and run with it. 

Last year it launched into market two memorable campaigns – one for the new large Palisade SUV and the other for the medium Tucson SUV, both by Innocean.

The Palisade’s ‘Kidult’ campaign featured kids growing alarmingly quickly inside the gigantic SUV, while the Tucson had robots fawning over its futuristic looks. Both went far beyond the standard ‘car driving with voiceover of features in the background’ formula. 

Meanwhile, Orchard created a Facebook chatbot for Hyundai, which the brand is calling an automotive first. The bot’s AI ​​assists current and prospective Hyundai owners to find information about vehicles while on Facebook.

One sticking point for Hyundai, however, is that the gap to Mazda in second is widening slightly by sales numbers. In 2019 it had come down to just over 10,000 vehicles, giving Hyundai a genuine shot at overtaking Mazda. In 2021 though, that gap has widened to just under 30,000 vehicles.

4. Ford

Marketing Director: Daniella Winter

Key Agencies: BBDO Australia

What is it they say about the traditional networks in adland struggling the most to evolve and adapt? Ford is the traditional network of automotive manufacturers, which is a shame as by all accounts from motoring journalists, it makes good cars. 

The fact Ford is still in the top five may have people scratching their heads. When was the last time you saw a relatively new Ford on the road? Unless it was a Ranger, of course.

That is the story of Ford. Last year it sold 71,380 vehicles, 50,279 of which were Rangers – the second highest selling single vehicle, behind only the Toyota Hilux. 

Its recent ‘Celebrate the Wins’ campaign from BBDO Australia focuses on the practicalities of select vehicles while the Puma small SUV campaign launched earlier in 2021 seems to have fallen flat with the vehicle not troubling the charts. 

One win, however, is its continuation as primary sponsor of the Geelong Cats to 2025, which will take it to a 100 year sponsorship, one Ford is touting as possibly the longest sporting sponsorship in the world.  

5. Kia

General Manager of Marketing: Dean Norbiato

Key Agencies: Innocean Australia, Havas Media 

Watch out, Kia is coming. According to VFacts, in 2016 Kia (sister brand to Hyundai) was the 10th most purchased car brand. It now sits in fifth, having stepped one up from last year, ousting Mitsubishi from the top five. And the quest continues.

Major sponsorship of the Australian Open, including the Kia Arena in Melbourne, has done its job cementing the brand in the Australian market. It’s held on to that sponsorship for 21 years, ironically taking it off the manufacturer that sits right above it in the sales charts in Ford. 

While Kia entered the market as a cheap and cheerful brand at a time where Korean brands had no heritage, the image has slowly changed as the vehicles increasingly shifted up market. That allowed the brand to justify price increases and recently meant a new logo and slogan (‘Movement that inspires’) was required to keep the brand moving forward. 

A genuine shot at ousting Ford from its number four spot next year. 

Top five emerging manufacturers

1. GWM Haval

Executive General Manager, Marketing and Communication: Steve Maciver

Key Agencies: The Hallway

The Chinese manufacturers are emerging as a significant threat to the establishment, none more so than GWM Haval, which is already recording significant sales figures, making the 251% increase YOY even more impressive for such a new brand to the market. 

GWM Haval is currently selling models including the Jolion small SUV, H6 medium SUV and the Ute Cannon. While it’s unarguably a price driven strategy, undercutting all of the major players, it’s being backed up by solid marketing as well.

At the beginning of the year, The Hallway was appointed to manage brand strategy, advertising, digital, social and CRM while the brand has been heavily active in market with relatively straight-forward campaigns that push the value front home. 

GWM Haval isn’t new to the market though, it’s had a crack before and failed to achieve significant results. This time around it looks serious. Although the dual name situation may cause slight confusion – the passenger vehicles are heavy on the ‘Haval’ branding without substantial GWM branding. 

In a price driven market, that may not make a big different right now but likely will in the future.

2. MG Motor

General Manager Marketing and PR: Mark Vukoja

Key Agencies: Joy

MG Motor is another Chinese brand making waves in the local market. SAIC Motor took a gamble to purchase the well-known and much loved MG brand which was all but dead. But with smart pricing, good marketing and a brand that still resonates well with motorists, it’s becoming a serious threat to the established market. 

A 155% increase to 39,025 sales will have a lot of brands well and truly looking over their shoulders, particularly in a cost of living crisis. 

Launched into market by Atomic212 and having used well known agencies in various areas including Nunn Media, The General Store and Do, parent company SAIC takes the MG Motor marketing seriously, leaning on the premise of the car you want to own when you want a known brand without the price tag. 

3. LDV

National Marketing Manager: Liz Katsiotis

Key Agencies: VCCP

LDV is another Chinese brand breaking through. The difference here is that LDV has commercial customers in its sights and the brand is distributed in Australia by well known automotive distribution business Ateco Automotive, who also takes care of Maserati and Renault in Australia. It is also part of the SAIC family, like MG.

In late 2020, VCCP was appointed to lead the marketing charge for LDV, which has largely focused on the commercial vehicle side (LDV does produce one more passenger focused model – the D90 SUV). One of the latest creative works from the agency was the ‘There’s a new ute in town’ campaign, pushing the brands power output. 

Numbers are still comparatively small, at 15,188 (the Toyota Hilux alone sells over 70,000), but in a cost of living crisis where businesses are counting every penny, this could be LDV’s opportunity with an entry level of $34,000.

4. Isuzu Ute

Executive GM Marketing and IT: Mike Conybeare 

Key Agencies: Liquid Interactive 

Isuzu Ute’s 61.6% growth to almost 36,000 vehicles is impressive based on a small range. It’s the popular D-Max ute or the MU-X SUV which is largely the D-Max in different clothing.

Isuzu Ute (as opposed to Isuzu Trucks) doesn’t talk much about its marketing strategy in the trade media. While on the surface it might not look like anything other than the standard adventure and work-horse based show and tell campaigns, the brand has slowly instilled the ‘Go your own way’ (based on the classic Fleetwood Mac song) phrase into the minds of consumers. 

Much like ‘Oh what a feeling’, Isuzu Ute has found a phrase that matches the brand and has stuck to it regardless of the feedback. The dogged determination seems to be working, with the memorability of Isuzu Utes increasing to the point where the sales are booming (comparatively speaking).

Importantly, Isuzu Ute also made a play for a more mainstream market through its primary sponsorship of the A-League soccer. 

5. Skoda

Head of marketing: Beryl Thomas  

Key agencies: DDB, PHD

The plucky Skoda brand has a history of being budget friendly and quality light. That was until Volkswagen Group took it over in the 90s and slowly turned it into something more closely aligned to the reputation of Volkswagen – almost luxury but at a more mainstream price. 

Skoda still sells in small numbers in Australia despite a variety of models, but it’s always been a brand that flies somewhat under the radar and is pitched at consumers that don’t want the standard vehicle options Think SUVs between small and large, performance wagons and vehicles with impressively flexible layouts. 

The marketing hasn’t been memorable, however, which goes hand in hand with the brand flying under the radar. Key agencies DDB and PHD appear to be instructed to spend more time on the Volkswagen brand, and understandably so. 

Its previous creative has centred around being different, while it pushes its involvement in global cycling considerably. 

The Unmade Index: Back in green but for how long?

After registering falls repeatedly last week, The Unmade Index bounced back slightly on Monday. The recovery was small, with a 1.27% gain to 759 points, in keeping with the wider ASX All Ords, which was up by 1.5% yesterday.

Domain, which briefly dipped below a $2bn market cap last week, was the biggest mover, up 2.5%.

Nine and Ooh Media also saw increases, up 1.34% and 1.08% respectively, but both are still significantly down from their 2022 highs.

Southern Cross Austereo was the only stock to fall, down by 1.03%.

On the road

Tuesday beckons, so time to let you move on with the rest of your plans, which may or may not include thoughts on a new car purchase. As ever, we welcome feedback. Please send any to letters@unmade.media. 

And if you missed it, do make sure to listen to the podcast of Unmade’s first live event, Marketing in a Cost of Living Crisis. You can hear it here. 

My colleague Tim Burrowes will be back with more tomorrow. Enjoy your Tuesday, 

Damian Francis