Truck market doldrums drag on

The latest T-Mark sales data shows the Australian truck market is still struggling along, while sales of new LCVs are powering ahead

The Truck Industry Council has released its T-Mark sales data for July, with the figures revealing an overall drop of 3.8 per cent compared to the corresponding 2013 period across the combined truck and light commercial vehicle (LCV) segments.

A total of 17,015 new trucks and LCVs were sold to the end of July 2014, down from 17,679 to the end of July 2013.

While the overall sales tally for the month of July was actually 2.0% up on July 2013, there was little cause for celebration within the light-, medium- and heavy-duty truck segments, which recorded year-to-date drops of 5.3%, 7.1% and 5.3% respectively. Light commercial vans, however, are still bucking the trend – year-to-date sales in that segment were up 9.7%, with 2533 units.

Traditional market leader Isuzu is dominating with 3929 new models sold, which in fact represents growth of 2.6%. It's followed by Hino (down 10.8%), Fuso (down 14.8%), Kenworth (down 15.7%) and Iveco (down 11.5%).

Isuzu has also increased its overall year-to-date market share, increasing its slice of the pie from 21.7% to the end of July 2013 to 23.1% to the end of July 2014.

Big sales gains have been made by Mercedes-Benz (up 16.7%), Mack (up 26.1%), Scania (up 10.1%) and especially Cat (up 197.8%), although the latter's increase admittedly comes off a relatively small base (Cat sold 45 units to the end of July 2013, that figure increasing to 134 to the end of July 2014).

It seems the three brands under Penske Commercial Vehicles are still finding their feet after their relatively recent change of ownership – sales of Western Star, MAN and Dennis Eagle trucks fell by 25.9%, 17.5% and 31.5% respectively.

A total of 6013 heavy-duty trucks have been sold to the end of July 2014, with Kenworth leading with a market share of 19.7% ahead of Volvo (12.3%) and Isuzu (10.2%).

Some 3619 medium-duty trucks have been sold so far this year. Here Isuzu leads the charge with a market share of 41.5%, ahead of Hino (26.6%) and Fuso (17.4%).

In the light-duty market, where 1812 trucks were sold to the end of July, the podium placings mirror those of the medium-duty market. Isuzu is on top with a market share of 37.4%, ahead of Hino (22.2%) and Fuso (19.2%).

The light commercial vehicle market continues to be dominated by Mercedes-Benz, the 1235 sales it recorded to the end of July 2014 representing growth of 17.3%. Renault has shot up the leaderboard to slot into second with 470 sales – that's staggering growth of 288.4%, largely stemming from a recent influx of new and updated models.

Tony McMullan, CEO of Truck Industry Council, warned the slight increase in sales for July was no cause for celebration.

"I am encouraged by the result in July, but due to the poor sales experienced January through to June, I am far from making the call that the sales 'drought' is over," he said.

"These July numbers could simply be a result of some late deliveries carried over from the end of financial-year month of June. One month’s good result is not a game changer.

"In fact the recent release on July 30 of the January 2014 ABS Motor Vehicle Census reconfirmed that the average age of the 582,119 trucks registered in Australia is still just shy of 14 years.

"This is a sobering reminder that our truck fleet is simply not getting younger. And with around 35% of these vehicles being built before 1996, when exhaust emission standards did not apply, it is not surprising that State governments are coming under increased public pressure to clean up city vehicle pollution, particularly in and around tunnels.

"TIC has long called for an incentive program that would see truck operators encouraged to replace the oldest trucks in their fleets with new vehicles to improve levels of productivity, safety and of course environmental outcomes."

Truck market doldrums drag on

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