New truck sales slide continues

The Australian truck market is still languishing, with sales of new trucks for the month of May down seven percent

Data just released by the Truck Industry Council (TIC) indicates new truck sales fell by seven percent in May compared to the same month last year, with a total of 2575 units sold. Losses were sustained in all segments bar light-duty vans.

The year-to-date figure is only marginally better, with the 11,333 units sold to the end of May 2014 representing a drop of five per cent over the corresponding period for 2013.

The heavy-duty segment took a major hit, its 937 deliveries equating with a contraction of 15.4 per cent for May, although its year-to-date figure is a somewhat more palatable drop – but a drop nonetheless – of 4.4 per cent.

Medium-duty trucks dropped by 8.9 per cent in May, with 545 units, and are down 12.2 per cent for the year, while the light-duty segment posted a drop of 4.0 per cent for the month – a reasonable figure, given its significantly steeper monthly drops of late. Some 723 trucks were delivered in the light-duty segment in May, seeing the year-to-date results for the niche total a drop of 8.6 per cent.

In stark contrast light-duty vans are powering on, the segment's 370 sales for May equating with growth of 19.4 per cent for the month and 14.6 per cent for the year.

According to Tony McMullan, CEO of Truck Industry Council, the figures underline a greater overall concern.

"We typically see new truck sales lag behind general economic trends by three to six months but what we are currently experiencing is the truck sector being something of an indicator, or barometer, to the direction that our economy is heading," he said.

"Key economic indicators released in the past few days show that our economy is slowing and consumer and business confidence is not strong. Here at the Truck Industry Council, we could have told you that this was the case a few months ago!

"Initial reactions to the recent Federal budget have done nothing to renew business or consumer confidence. Hopefully we will see this turn around in the second half of the year as the implementation of government’s planned infrastructure and job creation programs begin."

New truck sales slide continues

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