Heavy vehicle sales levels are now at pre-GFC levels, the Truck Industry Council says
The truck market is booming, according to new data from the Truck Industry Council (TIC), with a number of long-standing records broken in June.
The TIC-produced T-Mark truck market sales database revealed that a total of 4,231 heavy vehicles – comprising heavy-duty, medium-duty and light-duty trucks and vans – were sold in June 2018 – beating the previous best June high of 3,879 set last year and the shared 2007 and 2009 mark of 3,718 units.
In a statement released today, the TIC said that truck sales had flourished in June 2007, before the Global Financial Crisis (GFC), while the 2009 result was artificially affected by government GFC incentives that saw a spike in sales at the end of the financial year, in a year that was otherwise quite forgettable for new truck sales.
“Last year saw a healthy market and quite strong truck sales, though ultimately not record breaking by year end,” the TIC says.
“The 4,231 sales recorded in June are particularly significant because it represents the first time that the heavy truck and van market in Australia has broken through the 4,000 vehicle mark for a single month.”
TIC chief executive officer Tony McMullan says there was strong performance both in June and across the first six months of 2018.
“It is encouraging that as the Australian economy rallies, truck sales are growing too, breaking many long standing sales records,” he says.
“It is particularly pleasing to see the Heavy Duty segment breaking records that have stood since prior to the Global Financial Crisis.”
“Australia needs to renew its aging truck fleet, to make our industry safer, cleaner, greener and more productive, we need continued record breaking sales to facilitate this. The first half of 2018 is a starting point,” McMullan says
Another record broken in June was the rate of new Heavy Duty truck deliveries – with the rate of 1,433 sold in June breaking the previous record high of 1,421 – set in June 2010 as buyers cashed in on purchases of Euro 4 trucks before Euro 5 trucks were introduced in the 2010-2011 financial year.
“The third record to fall last month was that for Light Duty truck sales, with 1,304 ‘little trucks’ sold, breaking the previous record of 1,233 set in June 2017,” the TIC says.
“Finally, the overall half year result for calendar year 2018 was also a new record with this year’s January to June result smashing the previous mid-year peak of 18,218 sales set in the pre-GFC year of 2008 by 1,752 heavy vehicle sales. 19,970 heavy vehicles have been delivered year-to date in 2018.”
Second quarter stronger than 2017
“Taking a look at each of the four segments individually, the Heavy Duty truck segment has again performed strongly in June with 1,433 HD deliveries, up 14.6 per cent (183 trucks) over the same month in 2017 and as was detailed above, a new record for the month of June,” the TIC says.
“Looking at quarter two 2018 in isolation, we again see a healthy performance from the HD sector, 3,917 sales for April to June, up on the second quarter 2017 result by a significant 903 trucks, or 30 per cent.
“Looking at the first half year result, Heavy Duty trucks sales are in a much better place in 2018, 6,820 sales verses 5,131 sales to the end of June 2017, an improvement of almost a third – or 32.9 per cent.”
Strong sales growth in the medium duty segment has surprised some, with the 895 medium duty trucks delivered last month being up 20.5 per cent (152 trucks) over June 2017, the TIC says.
“The overall April to June remains strong with 2,316 Mediums delivered in quarter two 2018, compared to 1,943 for the same period in 2017, running 19.2 per cent above 2017 levels.”
Year-to-date Medium Duty truck sales are performing very well with 4,084 deliveries to the end of June 2018, up 23.0 per cent (763 trucks) on the 2017 half year result, the TIC says.
And the record breaking number of 1,304 light duty truck sales in June, with up 5.8 per cent or 71 vehicles over June 2017 helped lead to a strong second quarter result of 3,446 trucks sold – up 329 on the 3,117 deliveries made in the second quarter of 2017.
For the first half year 6,021 Light Duty truck have been delivered, comfortably ahead of the same period in 2017 by 10.5 per cent or 570 trucks.
Amongst all the good news there was a little dampener, the TIC says, with June light duty van sales of 599 down 8.3 per cent or 54 vans over the 2017 June results .
“LD Vans posted a total of 1,616 sales for the months of April to June, up slightly, 3.6 per cent (57 vans) over the same quarter in 2017, where 1,559 vans were sold.”
“At the half way point of the year, the Van tally stands in positive territory at 3,045 units, up on 2017 sales by 5.4 per cent (157 vans).”
TIC president Phil Taylor says the June results capped off a great second quarter result – which when combined with first quarter sales puts total sales figures at record highs for the six month mark.
“I have said before that it has been a long road to recovery and I hope that market strength we see currently continues for the remainder of the year and that 2018 will continue to re-write the history books,” he says.