Sales numbers for July a mixed bag

Strong sales across all segments have been a month-to-month certainty in the Australian new truck market in the first six months of 2023.

However, while this trend continued in July for the heavy- and medium-duty segments, albeit at a more modest pace, light van and particularly light truck sales took quite dip in the month just passed.

Total heavy vehicle sales for the month were 3181 units, down 9.0 per cent (313 vehicles) over the same month last year, while total year-to-date sales to the end of July still lead those of 2022 by a healthy 13.1%.

As detailed above, the heavy-duty truck segment remained strong in July, though down on the record-breaking sales seen in the first half of 2023.

In total 1105 Heavy trucks were delivered, up 3.6%, or 38 trucks, on July 2022. Year-to-date, the result is looking much better, with heavy-duty sales tracking up 23.2% over those of the same period in 2022.

In terms of actual truck numbers, the sales gap is now 1854 more heavy trucks sold year-to-date in 2023, thanks to the record-breaking sales result for quarters one and two.

Medium-duty truck sales have been solid, but not spectacular, thus far in 2023 and that trend continued in July. The Australian medium-duty market ended the month of July with 563 sales, which is up 1.3% (seven units) over July 2022.

Solid results for much of the first half of 2023 have seen the medium-duty segment stay ahead of 2022 sales and year-to-date the medium market remains up over last year by 3.7%, with an additional 161 trucks sold to the end of July.

As detailed above, the light-duty truck segment was the real disappointment in July, slowing considerably more than any other segment. A total of 1064 light-duty trucks were delivered last month; this was down considerably on July last year.

In fact, 24.8% fewer light trucks were sold in July 2023, which is a reduction of 350 truck sales in a single month.

Year-to-date light-duty truck sales are faring much better, up over the same period last year by 767 trucks (up 8.5%). However, another two months of sales as we have just seen in July 2023 would see that advantage erased.

The light-duty van segment had been recovering sales lost during the pandemic years where supply chain issues significantly affected the segment.

However, the month of July saw sales retreating again. Light-duty vans posted a total of 449 sales in July 2023, down 1.8%, or 14 fewer units than July 2022.

Year-to-date, the tally looks better for the van segment with a total of 3363 van sales, up exactly 14.0% over 2022 results. That amounts to 413 more vans sold year-to-date in 2023.

Chief Executive Officer of the Truck Industry Council, the peak industry body for truck manufacturers and importers into Australia, Tony McMullan, said the sales result was not unexpected for the month of July, though the drop in sales relative to July 2022 was potentially concerning.

“Historically we witness a drop in heavy vehicle sales in the month following the financial year end, hence this July result is not unexpected,” he said.

“However, of some concern is the significant fall in new truck sales relative to the month of July 2022. A 9% fall for July 2023, compared with July 2022, was not anticipated by the industry, in what has been a record-setting sales year thus far in 2023,” Mr McMullan added.

“The end of the financial year also marked the end of the COVID-19 financial incentive commitments put in place by the previous Federal Government and honored by the current Labor Government.

“Despite calls from industry for the delivery timeline for the incentive scheme to be extended for orders currently placed, Government did not agree and the program ended on the June 30.

“I hope that the poor July sales were simply an aberration and not a sign that Government has misjudged how useful these financial measures were to the road transport industry. We shall see what the remaining months of 2023 determine.”