TRUCK sales set a record in 2022, breaking the 40,000 unit annual mark for the first time and while also bringing some signs of a resurgence to the van sector which has been plagued by availability issues since 2020.

The head of the Truck Industry Council, the peak industry body for truck manufacturers and importers into Australia, Tony McMullan, said: “It was pleasing to see 2022 finish by setting a new all-time sales record for new truck sales in Australia, eclipsing the previous peak set in 2018.

“It was equally pleasing to see that new truck and van sales broke through the 40,000 mark for just the third time ever, with the final figure of 44,379 sales, surpassing industry expectations.

“Heavy and Light trucks set new whole-of-year sales records with both segments showing no signs of slowing growth over the twelve months of 2022.”

Mr McMullan said the only concern from the 2022 sales results was the slowing of sales in the van segment.

“This highlights how global unrest/supply chain issues can significantly impact the Australian market,” he said.

Mr McMullan said that in addition to the worrying van market, the TIC was also concerned about the tax write offs available in an environment of customer delivery delays.

“The Truck Industry Council (TIC) and our members, remain concerned that current heavy vehicle orders taken under the COVID instant asset write-off tax incentive, can be fulfilled in the first half of 2023 due to these ongoing global disruptions,” he said.

“TIC again calls upon the federal government to extend the delivery timeline for this incentive program, for all current heavy vehicle orders.”

On the upside, the Australian truck and heavy van sales for the 2022 calendar year totalled 44,379 units, up a significant 2975 units, or 7.2 per cent, more than in 2022.

The tally was a new record for heavy vehicle sales in Australia, eclipsing by 2751 units (or about 6.2 per cent) the 41,628 new truck sales mark set in 2018.

The TIC said that while a new overall market record was set in 2022, it was not the only record set last year.

Quarters two and four were the strongest, however some new records were set in quarters one and three, highlighting the strength of the market throughout all of 2022.

By year end, new sales records were set in both the Heavy and Light truck segments, further highlighting the robustness of sales across the heavy vehicle sector.

“Taking a closer look at the results for the fourth quarter 2022, results show sales of 12,144 vehicles,” the TIC said.

“This was a new quarter-four sales record, eclipsing the previous best fourth quarter record set way back in 2007 (just prior to the Global Financial Crisis) when 11,013 heavy vehicles were delivered in October through to December.

“It was also a record quarter for both Heavy and Light truck sales in Australia.”

Reviewing the overall numbers for the month of December 2022 in isolation, the total heavy vehicle market of 4112 units was up a healthy 584 vehicles (or 16.6 per cent) on the 3528 trucks sold in December 2021.

This result was a new December sales record, surpassing the previous December mark set in 2021.

The Heavy Duty Truck Segment managed to amass sales of 1481 units for the month of December 2022, up a healthy 215 units, or 17 per cent, over the December 2021 result.

In the fourth quarter of 2022 HD truck sales reached a total of 4379, up 484 trucks (or 12.4 per cent) over October to December 2021.

“This was a new quarter four HD record, finally overhauling the previous high mark set way back in 2007 of 4041 Heavy truck sales,” the TIC report said.

“Overall, 2022 saw much healthier Heavy truck sales and the end of year total of 14,966 was a new record for the segment surpassing the 2018 peak of 14,344 by 622, or 15.1 per cent.

“Heavy Duty trucks make up the second largest slice of the Australian heavy truck and van market, accounting for 33.7 per cent of all heavy vehicles sold in 2022, trailing the Light Duty truck segment for the third year in succession.”

The Medium Duty Truck Segment showed modest growth over the year although December sales were slow.

The December 2022 total was 688 units, representing 46 less MD sales over the same month in 2021 which is a decline of 6.3 per cent for the month.

The fourth quarter MD segment result of 1954 was down on the final quarter 2021 result of 2030 units by 76 trucks, or 3.9 per cent.

“This is well behind the final quarter record for Medium trucks, set back in 2007 when 2812 MD trucks were delivered in the final three months and highlights the freight industry’s move away from Medium trucks into either smaller Light Duty trucks, or to larger Heavy trucks,” the TIC said.

“The total tally of 7850 MD truck sales in 2022, eclipsed that of 2021 by 6.2 per cent, or 460 trucks. While up on 2021 sales, the 2022 result is well below, 26.4 per cent, the segment peak of 2007 when 9923 Medium Duty trucks were delivered.

“Again highlighting that this segment is less favoured by transport operators,in 2022 Medium Duty truck sales accounted for just 17.7 per cent of new heavy vehicles sold in Australia, almost half of the 2001 peak of 30.9 per cent.”

More records were set as the Light Duty Truck Segment hit a high in 2022 and the month of December also delivered record sales with 1393 deliveries for the month, up 15.8 per cent (190 trucks), over December 2021. It was also the previous best December result for LD truck sales.

The TIC said that the fourth quarter total of 4239 unit sales was up on quarter-four 2021 by 11.5 per cent (437 units) and is a new fourth-quarter record, beating the previous mark by 15.7 per cent that was set in 2018, when 3575 LD trucks were delivered.

“The year-long sales trend in the Light Duty truck segment was also strong and set the scene for a record LD truck sales year in 2022,” it said.

“A total of 16,044 ‘little trucks’ were delivered last year, breaking the previous best Light Duty truck sales mark, set in 2021, by 1690 trucks. This equates to an 11.8 per cent rise.

“The Light Duty truck segment accounted for 36.2 per cent of all heavy vehicle sales in 2022, comfortably making this segment the largest.”

On the downside, the Light Duty Van Segment struggled for most of the year in 2022 in comparison with the record sales achieved in 2021.

“By year end just 5519 Vans above 3.5-tonne GVM were sold in Australia, down a significant 17.1 per cent (1142 vans) over the previous year’s result of 6661 van sales,” TIC said.

“December saw stronger than average 2022 sales for the van segment with 550 vehicles delivered, well up on December 2021 sales by 69.2 per cent (225 vans).

“The 2022 fourth quarter result of 1572 new van sales was up on the 2021 fourth quarter result of 1256, by 316 vans, or 20.1 per cent, indicating that the supply issues that plagued the sector in early and mid-2022, out of Europe, were easing.

“Slowing sales in 2022 has seen the van segment slip to just 12.4 per cent of the total Australian new heavy vehicle market, well down on their market peak of 18.1 per cent share, at year end-2020.”

By Neil Dowling