Sales strengthen in October

The latest Truck Industry Council TMARK data reveals new commercial vehicle registrations shrank by 2.3 per cent in October over the same month last year – a far smaller decline than we've seen in recent months.

A total of 3011 new trucks and vans were registered last month for a year-to-date total of 27,824 units, the latter representing a fall of 12.0% over the previous corresponding period.

The October tally may still be 2.3% down on that of October 2019, but it's a fraction of the falls experienced so far this financial year. The September tally was down 9.8%; in August it was down 20.7%; and in July it was down 9.4%.

And while that year-to-date figure is still 12.0% down, it's healthy indeed compared to Europe: at the end of September the market for new trucks and vans in Europe was down 24.5%.

In the individual categories, the prevailing trend of 2020 continues – the heavy end of the market is suffering the most, while registrations of new light-duty trucks and light-duty vans remain relatively buoyant, given the challenging market conditions.

The light-duty truck and light-duty van segments even posted growth in October over the same month last year – light-duty trucks by just 0.4%, but light-duty vans by an impressive 10.2%. Both results are indicative of the growth in e-commerce and last mile delivery during the COVID era and its related lockdowns.

Related reading:
Sales down through third quarter 2020
Truck sales slide rolls on
Truck sales: June rebound eases downturn impact

Here's a breakdown of the new commercial vehicle registration figures for Australia, year to date, to the end of October 2020…

October, 3011 (-2.3%)
YTD, 27,824 (-12.0%)

1. Isuzu, 6833 (-5.8%)
2. Hino, 4206 (-7.5%)
3. Fuso, 2824 (+0.1%)
4. Kenworth, 1546 (-19.6%)
5. Volvo, 1527 (-19.5%)

October, 1013 (-6.1%)
YTD, 8440 (-20.3)

1. Kenworth, 1546 (-19.6%)
2. Volvo, 1462 (-21.7%)
3. Isuzu, 1050 (-17.5%)
4. Scania, 718 (-24.2%)
5. Mercedes-Benz, 715 (-15.6%)

October, 536 (-9.8%)
YTD, 5372 (-14.3%)

1. Isuzu, 2210 (-9.6%)
2. Hino, 1792 (-8.4%)
3. Fuso, 871 (-2.9%)
4. MAN, 164 (-71.4%)
5. IVECO, 124 (+27.8%)

October, 934 (+0.4%)
YTD, 8934 (-5.9%)

1. Isuzu, 3573 (+1.0%)
2. Hino, 2018 (-4.4%)
3. Fuso, 1646 (+6.6%)
4. IVECO, 675 (-23.3%)
5. FIAT, 392 (-18.7%)

October, 528 (+10.2%)
YTD, 5078 (-3.9%)

1. Mercedes-Benz, 1802 (-22.4%)
2. Renault, 994 (+2.9%)
3. Volkswagen, 991 (+50.8%)
4. Ford, 802 (+13.4%)
5. IVECO, 245 (-11.2%)

"Having seen the new truck sales market stabilise to a large degree in quarter three, we are now realising a level of positive growth, although slight, across the Light Truck and Van segments in October, while sales in the Medium and Heavy segments, though down on October 2019 results, were well up on the 2020 year-to-date trend," said Tony McMullan, CEO of Truck Industry Council.

"These positive results across all heavy vehicle segments are most likely due to the ongoing financial benefits of the federal government's instant asset write-off incentive, that operators can leverage.

"I am pleased to see that the Truck Industry Council's lobbying efforts for an increase in the instant asset write-off limit and the scheme's duration were acted upon by government, with the Treasurer announcing in the recent federal budget that the $150,000 cap was to be removed and the scheme extended until the June 30, 2022.

"While Victoria came out of its almost four-month lockdown in mid-October, this likely had no positive effect on new truck sales, for the month just past, due to the lag time taken from truck order, body fit-out, to registration and customer delivery.

"The easing of restrictions in Victoria was pleasing for residents and should have a positive effect on new truck sales in November and December, furthering sales gains as the year closes out."