Sales drop for July

The latest sales data for July is in, and it was another tough COVID-impacted month for most

According to the latest TIC T-Mark sales data for July, a total of 2891 new trucks were registered during the month, equating to a fall of 9.5 per cent over the same month last year. The tally contributes to a year-to-date figure of 19,339 new registrations, with is a contraction of 12.4% over the previous corresponding figure.

Most major commercial vehicle segments continue to struggle in the face of the coronavirus pandemic and its associated economic impact, with the notable exception of light-duty vans, which while still marginally down for the year experienced a surge in sales for the month compared to July 2019.

Overall market

July: 2891 registrations (-9.5%)
Year to date: 19339 registrations (-12.4%)
Isuzu continues as Australia's top-selling truck brand, although the 4776 units it has sold year to date is down 6.8% on the same time last year. It's followed by Hino (3024 units year to date, down 4.2%), Fuso (1886 units year to date, down 7.0%), Volvo (1111 units year to date, down 14.1%) and Kenworth (962 units year to date, down 28.3%).

Heavy-duty

July: 782 registrations (-24.4%)
Year to date: 5701 registrations (-23.5%)
A total of 782 new heavy-duty trucks were registered in July, the figure representing a contraction of 24.4% over the same month last year. The year-to-date tally of 5701 units equates with a fall of 23.5% over the previous corresponding period. Volvo leads the heavy-duty sales leaderboard with 1063 units, followed by Kenworth (962), Isuzu (722), Scania (470) and Mercedes-Benz (467).

Medium-duty

July: 570 registrations (-9.8%)
Year to date: 3835 registrations (-13.0%)
Isuzu leads the medium-duty segment with 1553 new registrations, followed by Hino (1300), Fuso (609), MAN (153) and IVECO (75).

Light-duty

July: 989 registrations (-4.4%)
Year to date: 6244 registrations (-4.7%)
Isuzu also leads the light-duty truck segment, with a year-to-date total of 2501 units. This is followed by Hino (1457), Fuso (1079), IVECO (487) and Fiat (276).

Light-duty van

July: 550 registrations (+11.6%)
Year to date: 3559 registrations (-2.9%)
The light-duty van segment bucked the trend in July, its 550 new vehicles registered equating with growth of 11.6% over the same month last year. Mercedes-Benz continues to dominate with its Sprinter with 1348 units year to date, followed by Ford with its Transit (646), Volkswagen with its Crafter (634), Renault with its Master (591), and IVECO with its Ducato (198).

"Heavy-duty and, to a lesser extent, medium-duty truck sales continue retracting, no doubt suffering under the economic downturn and loss of business confidence as a result of the COVID-19 pandemic," said Tony McMullan, CEO of Truck Industry Council.

"Light-duty truck and van sales continue to be better than expected and those results are likely in reaction to the $150,000 instant asset write-off financial incentive set in place by the federal government and now extended to the 31st of December 2020.

"The new truck sector is again heading toward a 'two-speed' marketplace, as we saw from 2014 through to 2016, with solid sales in the lighter segments, while at the heavy end of the market, sales are slowing noticeably.

"On the surface the new truck market as a whole appears to be performing reasonably well, despite the current economic climate. However, when looking into the detail provided in the Truck Industry Council's T-Mark sales data, heavy truck sales are suffering significantly.

"There are further government financial incentives available to operators wishing to purchase a truck costing more than $150,000. I am specifically talking about the COVID-19 Accelerated Depreciation incentive that allows the purchaser of a truck priced over $150,000 to claim over 50 per cent of the new truck's value back at tax time.

"I urge anyone considering a new truck purchase to contact their accountant for the best advice on these incentives."