SLIDING heavy-duty truck sales is leading to an ageing transport fleet with negative outcomes for road safety, the environment and road freight productivity, according to Australia’s peak body for truck importers and manufacturers.

Truck Industry Council (TIC) president Phil Taylor said July sales figures show a continued fall in heavy-duty truck sales which he termed as “concerning”.

“I remain concerned with the continued slow sales in the heavy-duty segment,” he said.

“This will lead to an ageing of our nation’s heavy-duty truck park and is not a desirable long-term outcome for heavy vehicle road safety, the environment, or Australia’s road freight productivity.”

Although Mr Taylor said July was typically a slow month for truck sales, coming off the end of the financial year.

TIC chief executive officer Tony McMullan said the market was also influenced by the long federal election campaign “that could have been quite destabilising for business confidence and hence capital investment expenditure”.

“However, truck sales have remained solid for most market segments and this is pleasing to see,” he said.

The TIC said medium-duty and light-duty truck sales were ahead in July 2016 compared with the same period last year, while light-duty van sales have strengthened in recent months, now trailing the 2015 year-on-year results by a little over one per cent.

“However, the continuing poor sales of heavy-duty trucks is disappointing,” Mr McMullan said.

“It remains a concern for TIC and should be a concern for government as this part of Australia’s truck fleet continues to age.

“Hopefully we will see renewed business activity and increased investment in capital equipment now that the federal election has been decided and the nation’s future political direction is set for the next three years.”

While the heavy-duty truck segment showed a decrease of 8.9 per cent in July compared with the same month in 2015, the overall truck and van sector year-to-date was up 2.2 per cent due to brisk sales in the light-duty segment.

The TIC said light-duty trucks – up 5.2 per cent in July – had become a “month-to-month certainty” in the Australian truck market this year.

In figures, the heavy-duty truck segment was down again in July, continuing what the TIC terms “an unfortunate year-long trend” with a total of just 765 units delivered, down a significant 9.1 per cent, or 77 trucks, on July 2015.

The TIC’s analysis of the data reports: “Year to date, the result looks a little better with heavy-duty truck sales tracking down 3.8 per cent over those of the same period in 2015”.

“In terms of actual truck numbers the sales gap is now 208 fewer heavy-duty trucks sold than year-to-date in 2015.

“However, one needs to be reminded that the 2015 result was down 8.8 per cent over the same period in 2014 and compared to the end of July 2014, the 2016 year-to-date tally is down a very substantial 737 trucks.”

Medium-duty truck sales have been the second strongest segment of the Australian heavy vehicle market in 2016, but took a backward step in the month of July, with only 546 trucks sold.

“This is 5.9 per cent (34 units) less than July 2015,” the TIC said.

“Strong results for much of the first half of 2016 had seen the medium-duty truck segment kick ahead of 2015 sales and, year-to-date, the medium-duty market remains up over last year by 6.7 per cent, with an additional 244 trucks sold.

“Light-duty truck sales have seen solid growth in 2016 and while this trend slowed somewhat in July, ‘little truck’ sales were still up over those of the corresponding month last year.”

In July, 856 light-duty trucks were delivered, representing a gain of 4.4 per cent (36 trucks) over July 2015. Year-to-date light-duty truck sales are up over the same period last year by 480 trucks, or 8.9 per cent.

The TIC said the light-duty van segment has seen “quite patchy” sales in 2016. However, July 2016 was up on July last year by up 3.4 per cent or 14 units, with a total of 426 sales. Year-to-date, the difference is closing, down only 40 sales compared with the 2015 result.

 

 

 

TRUCK SALES:

Light Duty:

Make-model	Month	YTD	YTD share%	YTD
Isuzu N-Series	295	2250	24.4%	+21.0%
Mercedes Sprinter	216	1475	16.0%	-19.6%
Mitsubishi Canter	190	1214	13.2%	+16.1%
Hino LD	164	1178	12.8%	+17.3%

Medium Duty:

Make-model	Month	YTD	YTD share%	YTD
Isuzu N-Series	230	1660	41.4%	+12.0%
Hino MD	174	1117	27.8%	+5.7%
Mitsub Fighter	79	583	14.5%	-0.3%
Nissan UD	43	315	7.9%	+1.0%
Mitsubishi Canter	13	119	3.0%	+48.4%

Heavy Duty:

Make-model	Month	YTD	YTD share%	YTD
Kenworth	158	1092	21.2%	-3.5%
Volvo	158	853	16.5%	+4.7%
Isuzu HD	130	709	13.7%	+7.1%
Mack	52	478	8.5%	-9.9%
Scania	45	312	6.1%	-9.3%

Sales over the past 10 years, in segments

YTD July	LD	MD	HD
2016	9204	4011	5157
2015	8837	3729	5408
2014	7848	4368	5272
2013	8018	4953	5298
2012	7156	3687	6180
2011	6637	3383	5101
2010	6908	3849	5424
2009	6251	4054	5084
2008	7806	4988	7550
2007	6688	4527	7965
2006	6421	3910	6678