Economic climate conducive to truck sales: TIC


Burgeoning lighter vans a tell for how activity is rebounding

Economic climate conducive to truck sales: TIC
Larger vans are selling like hot cakes

 

The commercial vehicles market has undercut the economic pessimists’ horror predictions on the pandemic’s impact, with van sales on a tear and trucks mostly holding their own.

Truck Industry Council (TIC) CEO Tony McMullan is one who notes that truck sales are stronger than expected for a year that has seen Australia’s economy reeling from the effects of Covid-19.

"The positive upward trend in new truck sales witnessed in October across the light-truck and van segments has continued into November," McMullan says.

"Whilst the heavy-duty truck sector results were lineball with November 2019 sales. Importantly for the heavy segment, November marked the fourth consecutive period of month-on-month sales growth, with sales since July showing a positive, constant, upward trend.

"The medium truck segment continues to struggle in 2020, however October and now November sales, have improved significantly and were well up on the medium duty sectors 2020 year-to-date average.

"With the positive news earlier this week that Australia’s recession is officially over, with our economy growing 3.3 per cent in the third quarter, I am hopeful that, what has been a very tough year for most Australians, will conclude in a positive economic, health and social climate."

TIC is in no doubt that support measures such as the instant asset write-off and accelerated depreciation schemes "greatly assisted the heavy vehicle sector and no doubt many other industries too".  

"The recently announced, October 2020, extension of the instant asset write-off scheme and the removal of the $150,000 cap, will further stimulate our economy and no doubt heavy vehicle sales, throughout 2021 and well into 2022," McMullan says.


Read how the November truck sales performance panned out, here


While vans of 2.5 tonne and below actually took a blow, falling from 257 units to 195 this November compared with November last year, the workhorse 2.5-3.5 tonne segment ran fearsomely hot, jumping from 1,474 to 2,993.

According to the Federal Chamber of Automotive Industries (FCAI), VFACTS Service, Renault Kangoo felt the light van pain most in the month, dropping from 113 units to 24, some of which Volkswagen Caddy may have been picked up, rising from 123 to 158.

Amongst heavier vans, it is chalk and cheese compared with November 2019.

The bubbly really ought to be broken out at Toyota, with the HiAce sales nearly, to 1,500 units from tripling from 542 last November.

Hyundai has reasons for a glass or two, too, as the iLoad more than doubled sales from 234 to 527.

Ford dealers will be happy, with the Transit Custom up to 342 from 214 last November but a very slightly wider smile might be seen at LDV, where the G10 was up to 220 from 86.

But, then, it is hard to find a poor performance in the segment, bar Mercedes-Benz, where the Vito was down from 99 to 63.

 

You can also follow our updates by joining our LinkedIn group or liking us on Facebook

 

Trucks For Hire | Forklifts For Hire | Cranes For Hire | Generators For Hire | Transportable Buildings For Hire