Is Isuzu set to crack another record?

Market leader Isuzu Australia Ltd has had a bonanza in the first six months of this year with a record 7099 sales. But what is going to happen for the rest of the year now that the government’s Instant Asset Write-off has been wound back?

We sat down with Isuzu’s Chief of Sales and Aftersales, Ben Lasry, and Head of Sales, Craig White, to get their take on the next six months of sales and what Isuzu has coming for the next year or so.

Asked if they thought there would be a softening in the market after the end of the financial year and the cuts in government assistance for buyers, Mr White said there had been a bit of a dip in the order rate.

“Orders have probably slowed down somewhat, however in the lead times of preparing the bodies [of the trucks] I think there’ll be a lag between orders taken and delivery, which should see us through to the end of the year,” he said.

trucksales asked Mr White where the average lead time for a new Isuzu truck was currently sitting.

“It’s not actually us per se, but it’s the body builders; there are so many trucks going through, and not just from us, that it’s causing a bit of a log-jam,” he said. “On average, it’s about five months till it comes out the other end of that pipeline.”

Mr Lasry said that the mix of the orders is changing a bit, with fleet orders on the increase.

“The order rate is still fairly strong, but the mix in the order rate is changing, so we’re seeing a bit of a drop in retail for the Ready-to-Work type of truck,” he said. “Fleets are quite strong though because they’re either on a fixed turnover, or they’ve got new projects coming on and they’re not necessarily retiring their trucks, they’re adding to their fleets. So we’re seeing a change in the mix in favour of fleets, and we think that’ll keep going.

“We’re very confident about our numbers, but to help them along a bit we’re going to put a focus on the Ready-to-Work products in late Q3 to Q4 and try to order up some more of those, because that’s the part of the market we need to shore up after the June 30 deadline,” said Mr Lasry.

“So if there is any softening in the market, it’s in that space.”

Mr White said that historically the retail buyers come out of the market at the end of the financial year. “And that has been highlighted by how big the month of June was,” he said. “It’ll soften a little bit but in terms of market share and deliveries, we’re fine. Our pipeline is sound. We’re on track for a cracker.”

When pressed for an estimate for the projected year’s total, Mr Lasry was forthright.

“We’re going for 14,000 sales this year, or 14,082 to be precise – that’s what Harbo [Isuzu Australia Director and COO, Andrew Harbison] told me I have to get,” he said.

“We’ll get that number [14,000] barring any disasters – God knows what can happen in this world at the moment. But all the lead indicators are strong and the dealers are constantly asking us for more and more stock, so it’s certainly do-able.”

“Having Shindo san [IAL Managing Director, Takeo Shindo] so well connected in Japan, he’s been a huge part of us getting the production we’ve needed. And because we’re still Euro 5, we’ve been able to get that product because the componentry hasn’t been constrained as much as some for the Euro 6 markets. So Isuzu Motors have been able to furnish us with more production.

“Lately, we’re having a lot of success breaking into some of the corporate fleets that we haven’t ever sold to or haven’t sold to for a while, which has been a focus for our fleet team and has been a deliberate strategy from us. We’ve hired a couple of people who are very well connected across the industry and have been able to break into some of the bigger fleet customers that we’re talking to and getting some orders.

“The messages we’re putting out there about the future, and our approach to zero-emission vehicles while still having a range of diesels that are suitable for their needs, is starting to resonate,” said Mr Lasry.

And then there’s Isuzu’s first in-house electric vehicle, the N Series EV. trucksales asked Mr Lasry when we could expect to see that model here in Australia.

“With an asterisk next to it, within the next 12 to 18 months,” he said.

“We’ll be doing a few things before that,” he hinted. “We don’t want rush it [the N Series EV], we want to make sure the product is suitable for various applications, and we won’t know until we get our hands on some and give them to a couple of our target customers and let them use it.

“We’re all learning. We don’t know what we don’t know at the moment. It’s a step-by-step process. We want to make it right and make sure the offering is suitable. But you can be assured, it’s coming.”

Mr White said there is already steady enquiry for the electric truck.

“It’ll be in the four-and-a-half to seven-and-a-half tonne range and it’ll be aimed at the last-mile guys and our key fleets in that space. Obviously there is lots of demand from those guys asking if they can have a trial vehicle, and we really need to do some testing and research and see where that sits,” he said.

So with the electric truck coming in 12 to 18 months and the new N Series and F Series trucks on the horizon in line with the new ADR 80/04 Euro 6 requirements, there’s plenty in the pipeline for Isuzu Trucks Australia.

And with the bumper first half of the year and constant high demand from its dealers, it looks like Isuzu will crack the 14,000 sales mark and post its 35th year as the country’s commercial vehicle market leader.