Half-year truck sales surging

The Truck Industry Council has released its TMARK sales data for June, which reveals that significant gains were posted across all the truck categories for the month and across the first half of the year, compared to the previous corresponding periods.

A total of 6054 new trucks and heavy vans were registered in June, the figure up a significant 21.4 per cent over the same month last year, while the year-to-date tally of 24,395 vehicles is up by 16.8%.

In fact June 2023 was the biggest month ever in Australian truck sales according to the Truck Industry Council.

Across the major commercial vehicle categories there was no red ink to be seen, although not every brand is enjoying sales growth. The heavy-duty segment is experiencing the strongest growth so far this year, while the light-duty segment is also powering along. Even the light-duty van segment has picked up over the first half of the year, while the medium-duty truck segment also posted a gain, albeit more modest.

Let’s take a closer look at the data.

Rank, Brand, 2022 YTD, 2023 YTD, % CHG
1. Isuzu, 6043, 7099, +17.5%
2. Hino, 3374, 3166, -6.2%
3. Fuso, 2351, 2698, +14.8%
4. Volvo, 1042, 1814, +74.1%
5. Kenworth, 1421, 1759, +23.8%
6. IVECO, 654, 821, +25.5%
7. Mercedes-Benz, 659, 769, +16.7%
8. Scania, 483, 625, +29.4%
9. UD Trucks, 551, 610, +10.7%
10. Mack, 384, 533, +38.8%
11. DAF, 268, 427, +59.3%
12. FIAT, 236, 354, +50.0%
13. Freightliner, 225, 209, -7.1%
14. Hyundai, 129, 166, +28.7%
15. MAN, 207, 138, -33.3%
16. Western Star, 145, 90, -37.9%
17. Renault, 121, 74, -38.8%
18. Volkswagen, 42, 61, +45.2%
19. Dennis Eagle, 23, 27, +17.4%
20. Foton, N/A, 21, N/A
21. Ford, 29, 10, -65.5%
22. SEA Electric, 5, 10, +100.0
Total YTD: 24,395 (+16.8%)

While traditional market leader Isuzu continues its reign, the company also grew its half-yearly sales by 17.5% over the same period last year to reach 7099 units, second-placed Hino saw its sales shrink, its 3166 units equating to a drop of 6.2%.

In the major manufacturer blocks, however, it’s Volvo Group Australia in the spotlight with its combined year-to-date sales of Volvo, Mack and UD up by an astounding 49.6% collectively, with a total of 2957 units.

PACCAR is also growing, its combined sales of Kenworth and DAF trucks totaling 2186 units to give growth of 29.4%, while Daimler – which is the biggest block in terms of outright sales – experienced appreciable, though more modest, growth of 13.6% with its half-yearly sales tally of 3676 units.

Penske, meanwhile, has had a difficult first half to the year, its collective Western Star, MAN and Dennis Eagle sales totaling 255 units, which represents a contraction of 32% over the same period last year.

Rank, Brand, 2022 YTD, 2023 YTD, % CHG
1. Volvo, 1021, 1798, +76.1%
2. Kenworth, 1420, 1759, +23.9%
3. Isuzu, 1010, 1210, +19.8%
4. Scania, 483, 625, +29.4%
5. Mack, 384, 533, +38.8%
6. UD Trucks, 460, 519, +12.8%
7. Mercedes-Benz, 377, 450, +19.4%
8. Hino, 372, 438, +17.7%
9. DAF, 256, 416, +62.5%
10. Fuso, 346, 374, +8.1%
11. Freightliner, 225, 209, +7.1%
12. IVECO, 222, 160, -27.9%
13. MAN, 166, 123, -25.9%
14. Western Star, 145, 90, -37.9%
15. Dennis Eagle, 23, 27, +17.4%
16. Hyundai, 4, 1, -75.0%
Total YTD: 8732 (+26.3%)

The heavy-duty truck segment is powering ahead – the segment’s June tally of 2294 units was up an incredible 43.9% over June 2022, and the year-to-date total of 8732 units is up 26.3%. This mid-year point also sees Volvo at the top of the sales leaderboard, some 39 units ahead of arch rival (and traditional heavy-duty market leader) Kenworth, which is sure to have tongues wagging at both Wacol and Bayswater!

Across the major OEM blocks, Volvo Group Australia’s combined year-to-date tally of 2850 units is up 52.8% compared to the first half of 2022, while PACCAR’s total of 2175 units is up 29.8%. Daimler also grew, its total of 1033 units up 9.0%, but Penske’s combined sales are down by 29.9%.

Isuzu and Scania have also enjoyed a strong start to the year, those brands’ year-to-date sales up 19.8% and 29.4% respectively, while IVECO’s sales shrank by 27.9%.

Rank, Brand, 2022 YTD, 2023 YTD, % CHG
1. Isuzu, 1758, 1933, +19.8%
2. Hino, 1254, 1053, -16.0%
3. Fuso, 640, 728, +13.8%
4. UD Trucks, 91, 91, 0%
5. IVECO, 82, 56, -31.7%
6. Hyundai, 30, 39, +30.0%
7. Mercedes-Benz, 26, 19, -26.9%
8. Volvo, 21, 16, -23.8%
9. MAN, 41, 15, -63.4%
10. DAF, 12, 11, -8.3%
11. SEA Electric, 5, 10, +100.0
Total YTD: 3971 (+4.0%)

The Japanese-dominated medium-duty segment enjoyed a fair bump in sales in June, its monthly total of 1077 trucks equating to growth of 15.1%, while year-to-date movement was more modest, the total of 3971 units giving growth of 4.0%.

Isuzu leads the charge with nearly double the number of sales compared to second-placed Hino, and while Isuzu’s 1933 sales equates to growth of 19.8%, Hino’s tally of 1053 units is in fact a contraction of 16.0%. That leave Fuso to round out the medium-duty podium, its 728 year-to-date sales up 13.8% over the same period last year.

Rank, Brand, 2022 YTD, 2023 YTD, % CHG
1. Isuzu, 3275, 3956, +15.7%
2. Hino, 1748, 1675, -4.2%
3. Fuso, 1365, 1596, +16.9%
4. IVECO, 350, 605, +72.9%
5. FIAT, 236, 354, +50.0%
6. Mercedes-Benz, 256, 300, +17.2%
7. Hyundai, 95, 126, +32.6%
8. Renault, 121, 74, -38.8%
9. Volkswagen, 42, 61, +45.2%
10. Foton, N/A, 21, N/A
11. Ford, 29, 10, -65.5%
Total YTD: 8778 (+14.6%)

The light-duty truck segment also enjoyed a solid finish to the financial year, with 2034 new trucks flying off showroom floors in June to give growth of 12.3% over the same month last year. That has pushed the year-to-date tally to 8778 units, which is up 14.6% over the first half of 2022.

The traditional top-three Japanese players echoed the medium-duty segment’s performance, in that Isuzu leads and posted good growth (up 15.7%), second-placed Hino saw its sales decline (down 4.2%), and third-placed Fuso grew (up 16.9%). Fuso is currently nipping at Hino heels, just 79 units adrift in this segment.

IVECO has had an exceptionally strong six months, its tally of 605 units up 72.9% over the previous corresponding period, while ongoing supply issues continue to see both Renault and Ford struggle, those brands down 38.8% and 65.5% respectively.

Rank, Brand, 2022 YTD, 2023 YTD, % CHG
1. Mercedes-Benz, 961, 1315, +36.8%
2. Volkswagen, 314, 637, +102.9%
3. Renault, 710, 344, -51.4%
4. IVECO, 154, 270, +75.3%
5. FIAT, 97, 241, +148.5%
6. Ford, 257, 107, -58.4%
Total YTD: 2914 (+16.9%)

The light-duty van segment was flat in June, the 649 units registered equating with 0.6% growth. It’s a rosier picture in the year-to-date stakes, however, where the segment’s tally of 2914 units is up by 16.9% over the same period last year.

Supply issue have been pronounced in this segment, but it appears that Mercedes-Benz is bouncing back, its year-to-date tally of 1315 units up 36.8%. The Daimler brand has traditionally led this segment, at least when discounting Chinese brand LDV, which isn’t included in TMARK figures.

Volkswagen sales are also surging here, its 637 units up 102.9% over the first half of 2022, while IVECO and FIAT sales are also building strongly (up 75.3% and 148.5% respectively). That's in contrast with Renault and Ford, whose year-to-date sales are down 51.4% and 58.4% respectively.

Half-way through 2023, it appears the truck market is going from strength to strength, and could well be on track to top even last year's all-time record total of 44,379 units.

However, the path to such a feat is far from clear cut. Many businesses have rushed to take advantage of the Federal Government's Instant Asset Write-Off Scheme, ahead of that incentive being slashed to just $20,000 after June 30. And with cost-of-living and mortgage interest rate rises putting the brakes on consumer spending, and the potential threat of a recession on the minds of many, how the remainder of the year will play out is anyone's guess.

The CEO of TIC, Tony McMullan, said cracking the 6000 mark for sales in a single month is a fantastic result for the industry.

“This capped off a great second-quarter result and combined with solid first-quarter sales, finds the market at record levels at the half way point of the year,” he said.

“These very strong sales numbers to June 30 this year, and strong numbers since COVID relief commenced, demonstrate how Government decision-making in the form of an investment allowance can be successful in modernising the nation’s truck fleet.

“Australia, as we know, has one of the oldest truck fleets in the world and with each new truck sale comes a safer, cleaner, greener truck operating on Australian roads. With 24,395 new trucks on the road this year alone, this is indeed a good result for Australian road users.”