Solid month for new truck sales

Encouraging results although the Heavy Truck still lags year-on-year

According to the Truck Industry Council, May was the first month for 2016, that saw all heavy-vehicle segments outperform the equivalent month of last year, while year-to-date in 2016 three of the four segments are ahead of sales to the end of May 2015.

Total heavy-vehicle sales for the month were 2828 units, up 5.21 per cent over the month of May last year and ahead of year-to-date sales in 2015 by 3.7 per cent.

While the result for May was solid, it was the number of sales at the mid and bottom end of the truck market that drove the overall result. Individual segment numbers need to be reviewed to obtain a clearer picture of how the market is tracking for the year thus far.

As detailed above, the Heavy Duty Truck segment was up in May and this was the second successive month that HD trucks were in positive territory compared to the corresponding months of 2015. A total of just 808 units delivered in May, up 1.9 per cent, or 15 trucks, on May 2015. Year-to-date, the results are not as good with Heavy sales tracking down 3.1 per cent over the same period in 2015. In terms of total sales, the gap stands at 112 fewer Heavy truck sales in 2016.

The Medium Duty segment again posted solid sales, 616 trucks sold for the month which is a 4.4 per cent (26 units) gain over May 2015. Results over the first five months of 2016 have seen the Medium Duty segment kick ahead of the same period last year by 5.3 per cent, or 128 truck sales.

Light Duty truck sales have seen good growth in 2016 and this trend continued in May with the segment posting a rise of 9.6 per cent (79 trucks) over May 2015. Total LD sales for the month were 901 units. The strong result in May has helped to move the year-to-date sales of Light Trucks ahead of the same period last year by 388 trucks, or 11.0 per cent.

Bouncing back from two consecutive months of poor sales in March and April, the Light Duty Van segment rallied in May. LD Vans posted a total of 503 sales, up 4.1 per cent, or 20 vans, compared with May 2015. The year-to-date tally now stands at 2213 sales, up just 1.3 per cent (28 vans) compared with the same period in 2015.

President of TIC, the peak industry body for truck manufacturers and importers into Australia, Phil Taylor, commented: “The solid May result builds on the encouraging sales seen in the first part of 2016. However, as we have seen for much of the year to date, it is the Light and Medium Truck segments that are boosting this year’s figures, while van sales are similar to those of 2015 and the Heavy Truck segment still lags last year despite a slight comeback in March and April.”

Tony McMullan, the TIC’s Chief Executive Officer, was quoted as saying: “My concern is that the sales results for the next couple of months may reflect a “wait and see” position by truck operators wanting to see the result of the pending federal election before committing to new truck purchases. If this happens, we may lose the momentum that has been building over the past couple of months. Hopefully that will not eventuate,” McMullan concluded.

Solid month for new truck sales

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