Four months of positive growth

New truck sales grew again for the fourth consecutive month in November

Official T-Mark figures just released by the Truck Industry Council for the month of November 2016 show total truck market sales of 2956 units, a 3.6 per cent gain compared with the November 2015 total of 2853 vehicles and marks the fourth consecutive month (August to November) of equal sales, or growth, over 2015 results.

Despite this month’s numbers being stronger than those posted for November 2015, three of the four segments actually recorded equal or fewer sales to those of one year ago.

The notable exception, however, was the Heavy Duty segment which recorded a 21.3 per cent (171 trucks) increase in sales over those recorded in November 2015 and an 11.7 per cent increase (102 trucks) over the preceding month of October 2016. Year-to date sales are tracking above those of 2015 by 3.4 per cent, or 970 units, with 2016’s cumulative total standing at 29,903 to the end of November. That said, the year-to-date 2016 market still lags the pre GFC record year of 2007 by a significant 15.8 per cent, or some 4719 trucks.

As detailed above, the star performer this month was the Heavy Duty segment which recorded great gains over November 2015 sales. A total of 973 HD trucks were sold for the month, up 21.3 per cent (171 trucks) over November 2015. This result has helped claw back some of the ground lost in this segment in the first half of 2016, with year-to-date HD sales now standing at 8790 units, trailing the same period last year by just 1.1 per cent, or -93 units.

Medium Duty truck sales were down 1.3 per cent (-8 trucks) for the month of November running against the positive sales trend seen in this segment recently. However, MD sales year-to-date continue to outpace those of 2015 by 4.6 per cent (278 trucks) to the end of November 2016. A total of 6369 Medium Duty trucks have been delivered year-to-date.

The Light Duty segment was again in positive territory, but only just, recording sales of 898 units for the month, up just 0.7 per cent (6 trucks) over the November 2015 result. Year-to-date the LD segment has posted a healthy increase in overall sales compared to 2015, up 10.0 per cent (890 trucks), for a total to the end of November of 9774 deliveries.

The Light Duty Van segment again posted a negative result, down a substantial 12.5 per cent (-66 vans) for the month with total November sales of 464 units. Year-to-date LD Van sales lag those of last year by 2.1 per cent (-105 vans) to the end of November 2016. But this must be put in context, with 2015 van sales breaking all previous sales records in Australia, the year-to-date numbers in 2016 are the second-best result ever recorded.

President of TIC, the peak industry body for truck manufacturers and importers into Australia, Phil Taylor, said: "With just December results to come, new truck sales in 2016 should see the best post-GFC results for the industry, better than those recorded in 2015, albeit with growth coming in the Medium and Light Truck segments only. And despite the final result in 2016, it will be well short of pre-GFC sales by a few thousand truck sales."

Tony McMullan, CEO of Truck Industry Council, added to Mr Taylor’s comments: "We must remain mindful that at current new truck sales rates, Australia’s truck fleet is not being replenished at a level greater than the nation’s freight task is growing and as such the average age of Australia’s truck park will continue to grow older."

Four months of positive growth

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