The Truck Industry Council (TIC) said new heavy truck sales in Australia were continuing to go from strength to strength, with the month of June being further proof of a booming market. 

The June 2022 data saw a number of records broken for new truck sales in Australia, the TIC said.

“Firstly, the total number of Heavy Vehicles, Light Duty Trucks and Vans, Medium Duty Trucks and Heavy Duty Trucks sold in June was 4987 units, surpassing the previous best monthly high of 4741 set in June last year. 

“It was only in June 2018 that the 4000-sales mark, in a single month, was brokeManheim wins NSW govt businessSales keep on truckin’n for the first time and now just four years on, sales have almost broken through the 5000 barrier.

“Prior to 2018, the best sales month was shared by June 2007 and June 2009 when 3718 new heavy trucks were sold.”

The TIC said that June 2007 predated the global financial crisis (GFC), with both the economy and truck sales flourishing, while the 2009 result was buoyed by then Labor federal government GFC incentives that saw a spike in sales at the end of the financial year, in a year that it said “was otherwise quite forgettable for new-truck sales.”

“The current federal government COVID instant asset write-off incentive, put in place by the previous coalition government and supported by the Labor Party, is no doubt helping sales in 2022,” it said.

“The second record that was broken in June was that of new Heavy Duty truck deliveries, which saw 1594 units sold for the month, breaking the previous record of 1433 set in June 2018. 

“The strong 2018 result was no doubt due to a very healthy pre-COVID economy. 

“The third record to fall last month was for Light Duty truck sales, with 1751 units sold, breaking the previous record of 1620 (set in June 2021). 

“Finally, the overall half-year result for calendar year 2022 was also a new record with this year’s January-to-June result breaking the previous mid-year peak of 19,970 sales set in 2018, by 917 heavy vehicle sales. 

“In the year-to-date June 2022, 20,887 heavy vehicles have been delivered.”

TIC CEO Tony McMullan said approaching the 5000 mark for sales in a single month was a fantastic result for the industry.

“This capped off a great second-quarter result and, combined with solid first-quarter sales, finds the market at record levels at the halfway point of the year,” he said.

“However, while truck sales remain at record levels, the van segment is a reminder of the fragility of the market’s ongoing supply-chain issues that could potentially affect the truck sector too.

“I also see strong headwinds ahead for our economy, with rising inflation and interest rates likely to slow spending and tighten the borrowing capacity of some organisations. 

“I certainly hope that sales in the second half of 2022 will continue apace and that the 2018 sales mark can be surpassed, though that is not guaranteed, by any means, at this point in time.”

Taking a look at each of the four segments individually, the Heavy Duty truck segment has again performed strongly in June with 1594 HD deliveries, up 16.0 per cent (220 trucks) over the same month in 2021 and a new record for the month of June. 

“Looking at quarter two 2022 in isolation, we again see a healthy performance from the HD sector, 3904 sales for April to June, up on the second quarter 2021 result by a significant 551 trucks (14.1 per cent),” the TIC report said.

“Looking at the first-half year result, Heavy Duty trucks sales are in a much better place in 2022, with 6916 sales versus 5790 sales to the end of June 2021, an improvement of 19.5 per cent (1126 additional Heavy truck registrations). 

“The Medium Duty segment has been a surprise so far in 2022 with strong sales growth over 2021 and June was another strong month for the segment. 

“In the month, 997 MD trucks were delivered, up 19.5 per cent (163 trucks) over June 2021. 

“The overall April to June remains strong with 2310 Mediums delivered in quarter two 2022, compared with 2075 for the same period in 2021, running 10.2 per cent above 2021 levels. 

“Year-to-date Medium Duty truck sales are performing very well with 3961 deliveries to the end of June 2022, up 12.0 per cent (424 trucks) on the 2021 half year result.”

The TIC said June was a new record for Light Duty truck sales (trucks with a GVM between 3500kg and 8000kg), with 1751 LD trucks delivered for the month, up 8.1 per cent (131 vehicles) over June 2021, which was the previous benchmark for the month of June. 

The 2022 quarter two result was also strong for LD trucks with 4298 trucks sold, up 399 units (9.3 per cent) over the second quarter 2021 result of 3899 deliveries. 

For the first half year, 7517 Light Duty trucks have been delivered, comfortably ahead of the same period in 2021 by 9.4 per cent (647 trucks).

“Amongst all the good news, struggles continue for the Van segment, with June Light Duty Van sales (vans with a GVM between 3500kg and 8000kg) well down over the 2021 June results,” the TIC said.

“There were 645 LD Vans delivered for the month, down a massive 29.4 per cent (or 268 vans) over June 2021. 

“LD Vans posted a total of 1558 sales for the second quarter months of April to June, significantly down (by 45.6 per cent or 711 vans) over the same quarter in 2021, where 2269 vans were sold. 

“At the halfway point of the year, the Van tally stands at just 2493 units, trailing well behind (down 33.0 per cent) sales in 2021. That is 1230 fewer Van sales year-to-date in 2022.”

By Neil Dowling