Truck sales: June rebound eases downturn impact

A total of 16,448 new trucks and vans were registered to the end of June 2020, according to the latest TMARK data from Truck Industry Council, the figure representing a contraction of 12.9 per cent over the first half of the previous year.

In fact, despite a strong rebound in sales for most segments in the month of June, new registrations in every truck and LCV category fell over the first half of the year, as the turmoil of the COVID-19-triggered economic downturn grinds on.

Sales for the month of June bounced back by 13.5% over the June 2019 figure, with 4620 new units registered, but the gains were made in the medium, light and light-duty van segments, with the heavy-duty segment still posting a double-digit fall.

Market leader Isuzu continues its dominance but hasn't been immune from the pandemic fallout, its year-to-date tally of 4052 down 6.9% on the same time last year. However, that's a far more modest fall than that experienced by many truck brands over the first half of 2020, in a period when the only major truck brand to experience growth was DAF (up 14.8%), which is riding high with its recently released new generation of trucks.

Isuzu (4052 units) is still well ahead of its nearest competitor, Hino (2568), although Hino's new registrations only fell by 4.8%, compared to Isuzu's drop of 6.9% That leaves Fuso (1577) in third as far as year-to-date sales go, the brand experiencing a bigger contraction of 10.8%.

Apart from DAF, along with brands including Fiat (up 8.3%), Hyundai (up 1.6%) and Volkswagen (up 150%, although off a miniscule base), the overall year-to-date figures are awash with red ink.

Kenworth's new registrations fell by 29.1%, while Volvo's dropped by 14.4% and IVECO's by 17.4%. Mack dropped by 30.7%, and Penske Commercial Vehicles was hit hard too – Western Star's year-to-date registrations fell by 18.7%, but MAN's plunged by 60.3% and Dennis Eagle's by 39.1%.

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Rank, Brand, 2019 YTD, 2020 YTD, % CHG
1. Isuzu, 4350, 4052, -6.9
2. Hino, 2698, 2568, -4.8
3. Fuso, 1768, 1577, -10.8
4. Volvo, 1116, 955, -14.4
5. Kenworth, 1154, 818, -29.1
6. IVECO, 771, 637, -17.4
7. Mercedes-Benz, 856, 583, -31.9
8. Scania, 560, 408, -27.1
9. Mack, 548, 380, -30.7
10. UD Trucks, 325, 287, -11.7
11. DAF, 209, 240, +14.8
12. Fiat, 217, 235, +8.3
13. MAN, 519, 206, -60.3
14. Western Star, 150, 122, -18.7
15. Freightliner, 125, 110, -12.0
16. Renault, 144, 93, -35.4
17. Hyundai, 54, 55, +1.6
18. Ford, 67, 37, -44.8
19. Dennis Eagle, 46, 28, -39.1
20. Volkswagen, 10, 25, +150.0
21. International, 28, 23, -17.9

While overall sales were up in the month of June, sales in the heavy-duty segment fell, the 1134 units recorded representing a drop of 12.0% over the same month from the previous year. The year-to-date figure topped out at 4919 units – a contraction of 23.4% over the corresponding 2019 tally.

Volvo toppled Kenworth not only for the month of June (210 units versus 185) but also in the year-to-date figures – Volvo leads with 923 trucks, while Kenworth is sitting on 818, itself ahead of Isuzu on 619.

Of all the heavy-duty brands, only DAF (up 16.7%) and UD Trucks (up 30.2%) posted gains over the previous corresponding period. That's down to a positive reception and uptake of DAF's new-generation trucks and UD's new heavy-duty Quon.

Rank, Brand, 2019 YTD, 2020 YTD, % CHG
1. Volvo, 1104, 923, -16.4
2. Kenworth, 1154, 818, -29.1
3. Isuzu, 789, 619, -21.5
4. Scania, 558, 404, -27.6
5. Mercedes-Benz, 563, 400, -29.0
6. Mack, 548, 380, -30.7
7. UD Trucks, 182, 237, +30.2
8. Hino, 293, 234, -20.1
9. DAF, 198, 231, +16.7
10. Fuso, 268, 167, -37.7
11. IVECO, 219, 167, -23.7
12. Western Star, 150, 122, -18.7
13. Freightliner, 125, 110, -12.0
14. MAN, 197, 56, -71.6
15. Dennis Eagle, 46, 28, -39.1
16. International, 28, 23, -17.9

Sales for the month of June increased by 12.7% in the medium-duty segment with a total of 897 trucks, but the full half-year saw 3265 new vehicles on the road, equating with a drop of 13.0%.

The Japanese brands continue their dominance of the segment in 2020, with Isuzu ahead of Hino and then Fuso. All three sustained a contraction, however, in the year-to-date figures, as did UD Trucks and MAN.

Rank, Brand, 2019 YTD, 2020 YTD, % CHG
1. Isuzu, 1487, 1320, -11.2
2. Hino, 1163, 1104, -5.1
3. Fuso, 549, 505, -8.0
4. MAN, 322, 150, -53.4
5. IVECO, 64, 68, +6.3
6. UD Trucks, 143, 50, -65.0
7. Volvo, 12, 32, +4.5
8. Mercedes-Benz, 22, 23, +4.5
9. DAF, 11, 9, -18.3
10. Scania, 2, 4, +100.0

The Australian light-duty truck market rebounded strongly in June, likely buoyed by competitive end-of-financial-year offers, the Government's expanded instant asset write-off scheme, and surging e-commerce against a backdrop of COVID-19 lockdowns.

A total of 1583 new vehicle sales were recorded in June, representing growth of 24.3%. The surge went some way to pin back the fall in the year-to-date figures, which – with 5255 units registered – is now 4.8% below the previous corresponding figure.

Isuzu led the way with a half-year tally of 2113 units, a gain of 1.9%, while second-placed Hino posted 1230 units (a contraction of 1.0%).

Rank, Brand, 2019 YTD, 2020 YTD, % CHG
1. Isuzu, 2074, 2113, +1.9
2. Hino, 1242, 1230, -1.0
3. Fuso, 951, 905, -4.8
4. IVECO, 488, 402, -17.6
5. Fiat, 217, 235, +8.3
6. Mercedes-Benz, 271, 160, -41.0
7. Renault, 144, 93, -35.4
8. Hyundai, 54, 55, +1.9
9. Ford, 67, 37, -44.8
10. Volkswagen, 10, 25, +150.0

For the same reasons underpinning the growth in June in the light-duty truck market, the light-duty van segment also recorded spectacular growth. A particularly strong June figure of 1006 units represented meteoric growth of 40.9% over the same month last year. The year-to-date tally of 3009 units is, however, 5.2% down from the 2019 mid-year total.

Mercedes-Benz continues with its stranglehold of this market but posted a contraction of 10.5% over the first half of the year with 1163 units. However, that's still double that of its nearest competitor, Ford, which registered sales of 581 units (up 21.8%).

Volkswagen rounds out the podium with 516 units year to date, which corresponds with growth of 19.4%.

Rank, Brand, 2019 YTD, 2020 YTD, % CHG
1. Mercedes-Benz, 1300, 1163, -10.5
2. Ford, 477, 581, +21.8
3. Volkswagen, 432, 516, +19.4
4. Renault, 557, 491, -11.8
5. IVECO, 193, 141, -26.9
6. Fiat, 215, 117, -45.6

"We are now gaining a real insight into just how COVID-19 has impacted heavy vehicle sales in 2020, with the Heavy Duty segment hit very hard," said Tony McMullan, CEO of Truck Industry Council.

"The record sales or near record sales in both Light Duty segments appears to be a clear indication of the effectiveness of the federal government’s instant asset write-off incentive of $150,000, coupled with the financial year end. While the result has been of notable benefit for smaller trucks, it is clear that financial stimulus is required at the heavy end of the truck market.

"The Truck Industry Council has been calling upon government to increase the instant asset write-off to $450,000 for heavy-vehicle-specific purchases; such action would stimulate sales in the Heavy and Medium Duty truck sectors.

"Further, it must be remembered that July, August and September truck sales are historically low, as the new financial year begins. Coupled with an Australian economy still reeling from the effects of COVID-19 and now with much of Victoria facing Stage 3 lockdown restrictions again, I have concerns that the better than expected June sales result will be a short-lived aberration."