Truck sales have continued to be strong in 2023 following the record year in 2022. Sales in the first three months have culminated in a new record for the quarter with 10,458 trucks and heavy vans being delivered which is an increase of 18.8%.
Sales last quarter eclipses the previous all-time sales record set in quarter one last year where 8,817 trucks and vans were sold in January through to March and it is the first time ever that quarter one heavy vehicle sales have broken through the ten thousand vehicle sales barrier.
Looking just at the month of March 2023 in isolation, 4,174 heavy vehicles were delivered to customers. This is a new sales record for the month of March, beating the previous mark of 3,797, set in 2022, by 377 trucks, an increase of 9.9 percent.
The Heavy and Light Duty truck sectors along with the Van sector have all shown strong growth in the first three months of this year, up 20.0 percent, 17.4 percent and 41.5 percent respectively, at the end of the March 2023. Though in the case of Van sales, the percentage rise looks massive, however 2022 van sales were the worst seen in almost a decade, so the base was set very low last year. Over the same first quarter period, Medium Duty truck sales are up by a more modest 5.5 percent.
As detailed above, the Heavy Duty truck segment was up again in March with a total of 1,447 units delivered, up a healthy 16.2 percent, or 202 trucks, on March 2022. The first quarter result was even better, with 3,615 Heavy sales year-to-date, representing the 20.0 percent figure mentioned above, this was a new first quarter record for Heavy truck sales. That was a 603 Heavy truck increase over quarter one 2022.
The Medium Duty segment posted solid sales again in March with a total of 726 trucks delivered, up 5.8 percent, or 40 units, over March 2022. To the end of the first quarter a total of 1,741 Medium Duty trucks have been delivered, up by 5.5 percent (90 trucks) over 2022 first quarter sales.
Light Duty truck sales (those trucks with a GVM between 3,500 kg and 8,000 kg) performed very well last year, setting a new sales record by year end. The segment continues to build on those strong 2022 results this year. March saw sales in the Light Duty segment total 1,510 units, up 5.7 percent (82 trucks) over March 2022. However, the sales result at the end of the first quarter of 2023 is much stronger than the same period in 2022. Light Duty sales to the end of March are ahead of the same period last year by 17.4 percent, up 560 truck sales. With total Light Duty truck sales setting a new first quarter sales record of 3,779 Light truck deliveries.
Light Duty Van sales (vans with a GVM between 3,500 kg and 8,000 kg) were a noticeably poor performer last year, primarily due to supply chain issues limiting Australian availability. However, Van sales are showing a strong resurgence thus far in 2023. The segment posted solid sales in March with a total of 491 units, up 12.1 percent, or 53 vans, when compared with March 2022. The first quarter tally stands significantly better, up 41.5 percent (388 vans) over quarter one 2022 with 1,323 Vans sold thus far in 2023. Though as detailed above, Van sales last year were particularly poor, so these percentages look better than reality. With Heavy and Light truck segments posting record results in quarter one, the first quarter Van result, by comparison, was only the fourth best on record, trailing the current record set in 2021 by some 10 percent.
Tony McMullan, CEO of Truck Industry Council, the peak industry body for truck manufacturers and importers in Australia, commented on the results.
“The first three months of 2023 have brought record new truck sales in Australia, eclipsing the record set for the first quarter of 2022. Sales in all heavy vehicle segments are ahead of those at this time last year and this is pleasing to witness.”
“However as I cautioned last month, many sectors of our economy are cooling due to interest rate rises and with still no announcement from the federal treasury over extending the delivery timeline for the Temporary Full Expensing incentive, that is scheduled end on the 30th of June, industry remains concerned that many truck orders will be cancelled because trucks will not be completed and delivered into service by the end of this financial year, due to ongoing global supply chain issues. Cancelled orders would no doubt lead to job losses across the industry.” Mr McMullan concluded.
