Truck sales slump continues

After a dismal January, overall registrations of new commercial vehicles continued to contract in the month of February. According to the latest Truck Industry Council T-Mark data, a total of 2108 trucks and vans were registered for the month, the figure representing a 3.2 per cent decrease on the same month last year.

Only 638 new trucks were registered for the month in the heavy-duty segment – a massive 18.6% slide – while 426 medium-duty trucks were registered. That's a 10.7% drop from February 2014.

The light-duty segment, however, is bucking the trend. Some 702 new light-duty trucks were registered last month, the figure up a significant 17.4% on the previous corresponding period.

Light-duty vans continue to grow, the 342 vehicles registered in February equating with growth of 7.2%.

The year-to-date figures remain gloomy: overall the commercial vehicle market is down 4.9%. The heavy-duty segment is down 16.2%; the medium-duty segment is down 6.0%; the light-duty market is up 1.5%; but the light-duty van segment is up 10.8%.

The overarching trend is clear – a significant slump at the heavy end of the market is being tempered, albeit by only a small degree, by growth at the lighter end. However, overall year-to-date sales are still down by a massive 29.3% compared to where they were at the end of February 2008.

Tony McMullan, CEO of Truck Industry Council, said the results were cause for concern.

"Again another disappointing month and we are now off to a less-than-ideal start to 2015," he said.

"The solid results in the latter part of 2014, particularly in quarter four, are now a distant memory. Perhaps the current political uncertainty, with new governments in both Victoria and Queensland recently and with New South Wales facing the polls later this month, has dampened business confidence in the short term.

"I do, however, know that with fewer new trucks on our roads Australia’s truck park gets older and safety, environmental and productivity outcomes are undermined. When I look at recent buying behaviours it stands out that the results of the Federal Government’s stimulus measures in 2010, whilst in the depths of the global financial meltdown, clearly highlighted that the industry responds positively to these types of financial incentives.

"Government needs to recognise that this type of action does work and is required if we are to see a greater take-up of safer, cleaner and more productive heavy vehicles in this country."

After two months the top five manufacturers by volume are as follows: