Truck sales soften in March

According to the latest Truck Industry Council T-Mark data, a total of 2605 new trucks and vans were registered in March 2020 for a year-to-date tally of 6905 vehicles, the figures equating with year-on-year falls of 21 and 17 per cent.

The effects of the COVID-19 pandemic are increasing the downward pressure on sales of new trucks and vans, virus rocking global business confidence and, in many cases, prohibiting many businesses from even operating.

Heavy Duty sales again bore the brunt of the slow down with only 852 heavy trucks sold in the month of March, down a significant 28.2% (down 334 trucks) on March 2019. At the end of the first quarter Heavy Duty sales lag those of last year by 23.9% (down 696 trucks). In fact, the first quarter 2020 Heavy Duty truck sales result of 2220 units was worse than the immediate post Global Financial Crisis slump of 2011 to 2014, where sales for the opening quarter typically reached 2300 sales, or greater.

The Medium Duty segment was down 20.7% in March, with only 526 sales recorded. This was down 137 trucks when compared to March 2019 sales. The Medium Duty numbers for the first quarter faired a little better due to a solid start in January, followed by modest numbers in February. Year-to-date the Medium Duty truck segment trails the same period last year by 13.0%, which is down 215 trucks. A total of 1436 Medium Duty trucks have been sold so far in 2020.

The Light Duty market fared a little better than the heavier segments in March, possibly due to increased last mile delivery demand, providing supplies to those in isolation and staying at home, or potentially buoyed by the Federal governments $150,000 tax write-off incentive (that was not effective for larger trucks, due to their greater cost).

Light Duty truck sales (3500kg to 8000kg GVM) totaled 811 for March, down 13.8% (or 130 vehicles) over the March 2019 result. To the end of the first quarter, 2067 Light Duty trucks have been delivered, a decrease of 14.1% over the 2019 first quarter result, that amounts to 339 fewer year-to-date sales so far.

Light Duty Van sales (3,500kg to 8000kg) started the year better than any other segment, but sales fell away somewhat in March. A total of only 416 Vans were sold for the month, representing a fall of 17.8% over March 2019. The year-to-date end of March result is better, with 1182 van sales, down only 12.2% for the year. That has the Light Duty Van segment tracking 164 sales lower in 2020 when compared to the first three months of 2019.

Related reading:
Truck sales fall in February
Slow start for Aussie truck sales
2019 Australian truck sales: who grew, who didn't

"The new truck market in Australia was already tracking down in 2020 before the global rise of COVID-19 over the past few weeks and there is little doubt the worst is yet to come for our economy generally as well as for truck sales," said Tony McMullan, CEO of Truck Industry Council.

"The further decrease in sales that we have observed in the Heavy and Medium segments in March may well be the onset of this economic downturn, though most sales in March would have been set up in the preceding months with trucks delivered against existing customer orders.

"I believe that possibly April sales, but particularly May and June numbers, will give a better indicator of the no doubt tougher times ahead. However, for those wishing to purchase a new truck, I am assured by all Truck Industry Council members that it is business as usual, or as usual as it can be given the required social constraints, that vehicle stocks currently here in Australia are good, that any closures of local truck manufacturing facilities will be brief and on-going supply of trucks should not be affected in the foreseeable future."