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A SPOT of optimism has crept into the truck industry as its peak body examines the sliding April sales and states they “were not good, however we have seen worse.”

The Truck Industry Council CEO Tony McMullan said April sales were mixed which made it difficult to draw many specific conclusions from the results.

“There is no doubt that the Australian new truck market is in the midst of lows not seen since the Global Financial Crisis (GFC), however we have not yet seen truck sales fall below levels seen in 2009/2010, though we are very close,” he said.

Mr McMullan said that based on the TIC’s experience of the economic downturn that occurred during and post the GFC, targeted economic stimulus will be required in all areas of the freight transport sector and “not just trucks but also aviation, and rail”.

“In turn, we will be looking to the Australian government to provide that stimulus as we move to rebuild so much of our economy over the coming months and years,” he said.

The TIC official T-Mark figures for April show 2302 new trucks were sold in the month, a big drop of 21.8 per cent – representing 640 less units sold – compared with the same month last year.

“Compared to sales following the GFC, the industry is fairing slightly better in 2020,” the TIC said in its monthly review.

“In April 2009, sales only reached 2236 (66 fewer than this April) however we are certainly very close to those market lows.”

The year-to-date figures show the truck market is down 18.2 per cent when compared to the end of April 2019.

But the TIC said sales in Australia are holding up much better than in Europe.

“European Automobile Manufacturers’ Association (ACEA) figures for March 2020 showed a 47.3 per cent decline over March 2019, with April sales (yet to be released by ACEA) expected to be even worse,” the council reported.

On the Australian market, Heavy Duty (HD) truck sales recorded the second-best April result on record and although down, were better than March.

In April, 809 HD trucks were sold, down 19.6 per cent (or 197 less truck sales), but better than the 28.2 per cent loss recorded in March. Year-to-date the HD segment has recorded 3029 sales, down 22.8 per cent (893 sales) over 2019.

The Medium Duty (MD) truck segment bore the brunt of the current economic slowdown, TIC said.

Only 417 MD trucks were delivered, down 29.9 per cent (or 178 sales) compared with April 2019. The year-to-date MD truck numbers “look a little better” with the segment down on the four months to April 2019 by 17.5 per cent or 392 truck sales. A total of 1853 MD trucks have been sold to the end of April in 2020.

“The light end of the market saw quite mixed results, with Light Duty (LD) trucks performing the best of any segment in April,” TIC reported.

Light Duty van sales, by comparison, were the second worst – and TIC said not far from being the worst – performing segment.

LD truck sales (trucks between 3500 kg and 8000 kg GVM) totalled 706 for April, down 15.9 per cent (133 vehicles) compared with April 2019.

Year-to-date the LD truck segment is down but TIC said it was quite consistent on a month-to-month basis. It fell 14.6 per cent or 472 trucks and this calendar year, 2773 LD trucks have been sold.

LD van sales (vans with a GVM between 3500 kg and 8000 kg) started the year better than any other segment, however sales slipped in March and fell even further in April.

A total of only 370 LD vans were sold in April, a fall of 26.4 per cent over April 2019.

The TIC said that while the year-to-date end of April result of a 16.1 per cent drop is better, only 1552 LD vans have been sold in 2020, down 297 units on the same period in 2019.

Mr McMullan said he was pleased to see that the Heavy Duty segment “whilst obviously well down” performed better in terms of sales percentages than March.

He added that data from the LD truck and van segments were “puzzling”.

“Light Duty truck sales were down, but relatively stable month on month, however Light Duty van sales continue to recede significantly,” he said.

“Typically, we would expect to see both LD segments rise or fall, roughly in unison, given the economic environment.”

By Neil Dowling

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