Near record sales for 2021: Comment

Australian truck and heavy van sales for the 2021 calendar year totalled 41,404 units, as detailed in the Truck Industry Council T-Mark data released this week, up a massive 6928 vehicles, or 20.1 per cent, over 2020 sales.

It must be remembered however, that the 2020 result was heavily affected by COVID and while the same could be said for 2021 sales, the federal government financial incentives that applied throughout calendar year 2021, have been a significant contributing factor to the market’s stellar sales performance last year.

As 2021 drew to a close, some were predicting a new sales record and while December 2021 sales were a new record, with 3528 truck and van sales for the month, the overall tally for 2021 fell a mere 225 trucks short of a new Australian heavy vehicle sales record. That sales record is still held by 2018, when 41,628 heavy vehicles were sold.

However, when the numbers are analysed in a little more detail, there are some notable differences between 2021 sales and those of 2018.

This is highlighted by the split between segments. In 2018, the market was very much driven by the sale of Heavy trucks. In 2021, the Heavy truck sector was much weaker.

Rather, sales were driven by Light trucks and Vans last year. Heavy truck sales in 2021 were almost 10 per cent lower than in 2018, as were Medium truck sales. Conversely, Light truck and van sales were up by more than 10 per cent last year, when compared to sales from 2018.

This shows that while sales last year were at near record levels, the growth was at the bottom end of the heavy vehicle market, not at the top end. This may be due, in part, to supply chain issues effecting Heavy truck production, but more likely was a result of a lack of business confidence to renew the greater value assets in their organisations. This is understandable, given the ongoing uncertain economic climate generated by the pandemic.

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The Chief Executive Officer of TIC, the peak industry body for truck manufacturers and importers into Australia, Tony McMullan, said: “After the struggles over the past two years, it was pleasing to see 2021 finish with near record sales.

“This is testament to the hard work and resilience shown by all parts of the heavy road freight industry throughout the pandemic. However, there is no doubt that the leadership shown and financial incentives put in place by the federal government, has been the contributing factor in new truck sales last year.

“Overall, our economy is strong and that is no more evident than in the heavy vehicle sector.
“The past few weeks have again highlighted that the road ahead is neither clear, nor certain. COVID remains an issue that we need to continue to live with and manage.

“For Truck Industry Council (TIC) members, domestic and global supply chain issues look to be the greatest threat to new truck and van supply over the next twenty four months.

“This situation will not be resolved quickly and whilst the federal government’s financial incentives remain in place for over a year, TIC requests that government consider extending the ‘delivery to market’ phase of these incentives. Thus allowing new trucks to be delivered into service for a period of one year, beyond the current deadline of June 2023.” Mr McMullan concluded.