Truck sales slide in February

According to the latest Truck Industry Council data, Australian truck sales contracted by 6.7 per cent in February 2014

Recent sales data from the Truck Industry Council show that 2178 trucks were sold in the month of February 2014, the figure representing a contraction of 6.7 per cent, or 156 units, when compared to the corresponding period for the previous year.

It’s the third worst February result since 2003, only outdone by February in 2009 and 2011 when the effects of the Global Financial Crisis were still biting deep.

Hardest hit was the Light Duty segment, where the 598 sales recorded represented a contraction of 10.2 per cent, while sales in the Medium Duty (477 units) and Heavy Duty (784 units) segments shrank by 5.5 per cent 9.8 per cent respectively.

The only ray of hope was to be found in the Light Duty Van segment, where the 319 examples sold equated with growth of 8.5 per cent over those sold in February 2013.

The CEO of the Truck Industry Council, Tony McMullan, said truck sales were a little out of step with the Australian economy in general.

“While economic growth is somewhat patchy, the latest figures showed that Australia’s economy was stronger than expected in December, with GDP rising 0.8 per cent,” he said.

“Unfortunately this economic growth is not resulting in new truck sales at the moment. While the expectation is that the economy will slowly grow over the next few months, my concern is that new truck sales are not keeping pace with this growth.

“A further concern is that should this trend continue the age of the nation’s truck fleet will increase. Currently the average age of the Australian truck fleet is approaching 14 years – approximately twice the age of those countries to which we often compare ourselves. This is not a good result for road safety or the environment.

“Modern trucks employ more advanced safety and environmental technologies than earlier model trucks and as such reduced sales of new trucks could impact upon the Government’s objectives for increased road safety and reduced emissions from freight transport.

“We need new truck sales growth to ensure a younger, safer and cleaner truck fleet. At the moment we are simply not seeing this new truck growth.”

According to VFACTS data, Scania was the sole truck brand to post positive growth in February, its sales of 42 units representing an expansion of 5.1 per cent over February 2013.

Truck sales slide in February

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