Aussie truck sales remain resilient

The latest Truck Industry Council TMARK data reveals that 3174 new trucks and commercial vehicles were registered in November, which is 3.1 per cent more than the same month last year. In fact, it marks the fourth best November sales result on record, following the boom times experienced in 2007, 2017 and the all-time-record set in 2018.

Overall year-to-date sales have now tallied 30,998 new vehicles, which is down 10.7% on the corresponding period last year (and down 18.8% on the corresponding 2018 figure).

While that's significant, and while the heavy end of the market has been affected the most, it's still a better result than has been recorded in many world markets this year.

Truck sales have been better than anticipated given how COVID-19 lockdowns, border closures and the second wave in Victoria have ravaged our Australian economy. In fact, the light-duty truck and van segments are tracking right on the five-year sales average.

While the medium-duty sector is down approximately 14% on the five-year mean and heavy truck sales are lagging the five-year average by 8%, sales in all segments have no doubt been buoyed by the Federal Government's financial incentives.

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The heavy-duty truck segment continues to experience the greatest year-on-year slowdown of all of the heavy vehicle sectors, having been hit the hardest by slowing sales in quarters one and two, when business confidence plummeted due to COVID-19. However, the segment has clawed back some of those lost sales in the second half of 2020 and that continued, ever so slightly, in November.

Some 1032 heavy-duty trucks were delivered in November, the figure up by just one single truck over the 1031 trucks sold in November 2019. Overall the segment trails last year's results by 18.5%. In vehicle numbers, that's 2145 less heavies sold than this time in 2019.

The medium-duty segment has been the second hardest hit sector in 2020 and this trend continued in November, albeit at a slowing pace. A total of 562 medium trucks were delivered for the month, a decline of 3.8% (or 22 trucks) over November 2019 sales.

Year-to-date medium-duty truck sales lag behind those of the same period last year by 13.4% (down 917 trucks) and, as with heavy truck segment, this is primarily due to poor sales in the first half of the year.

Light-duty truck sales were again in positive territory in November, when compared with November 2019 sales. A total of 1015 light-duty trucks were sold for the month, 69 more little trucks than for the same month last year. That was a 7.3% improvement over the 2019 November result.

Year-to-date the light-duty truck segment is down 4.7% at the end of November. In terms of sales numbers, that was 10,443 light-duty truck sales in 2019 to the end of November, compared with 9949 thus far in 2020, a deficit of 494 trucks.

The Light Duty Van segment remains the least affected of all the heavy vehicle segments in 2020, with solid van sales posted again in November, up 8.9% for the month. Some 565 vans were sold in November 2020, which equates with an increase of 46 vans over the 519 sold in November 2019.

Year to date the light-duty van segment trails 2019 sales by 158 units (down 2.7%). A total of 5643 vans have been delivered thus far in 2020, compared with 5801 van sales to the end of November 2019.

"The positive upward trend in new truck sales witnessed in October across the light truck and van segments has continued into November, while the heavy-duty truck sector results were line ball with November 2019 sales," said Tony McMullan, CEO of Truck Industry Council.

"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, but October and now November sales have improved significantly and were well up on the medium-duty segment's 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% 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.

"Again, the Truck Industry Council would like to acknowledge and thank the Federal Government for the economic stimulus that it has provided throughout the COVID-19 pandemic. In particular, the original instant asset write-off and accelerated depreciation schemes, enacted in March 2020, greatly assisted the heavy vehicle sector and no doubt many other industries too.

"The recently announced 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."