DESPITE toughening economic conditions, the Australian heavy vehicle sector achieved a new annual sales record in 2024.
Tony McMullan, CEO of the Truck Industry Council (TIC), said it was pleasing to see the market hold up well, with the heavy duty van segment enjoying significant growth over 2023.
Overall, the heavy vehicle market recorded 51,277 sales for 2024, an increase of 3,520 units over 2023, although Mr McMullan was quick to point out additional brands joined the TIC reporting group in 2024, artificially inflating the final result.
"Part of this 2024 market growth comes from the Truck Industry Council (TIC) capturing two new Truck and Van brands (LDV Deliver 9 and Peugeot Boxer) in 2024," Mr McMullan said.
"While these two brands have been selling commercial vehicles above 3.5t GVM in Australia for a few years now, prior to 2024 they chose not to share their sales data.
"TIC has captured all sales from January 2024 in the T-Mark sales results for these two brands and this has added 3,010 additional sales in 2024 for brands that were not captured in T-Mark in 2023."
Despite the new brands, Mr McMullan said the market still grew over 2023, although the year-on-year increase was not as significant with the LDV 9 and Peugeot sales removed.
"With the LDV and Peugeot sales excluded, a total of 48,267 heavy vehicles were sold in 2024, and that is still a new all-time sales record, eclipsing 2023 sales by 510 vehicles, a 1.1 percent increase.
"This is in reality a more accurate indication of new commercial vehicle sales in Australia in 2024, a slight increase over 2023 sales.
"This is a great achievement for the sector given the economic headwinds, cost of living pressures, no interest rate relief, GDP per capita falls, that have seen many sectors in the Australia economy recede in 2024," Mr McMullan said.
Despite the new sales record, actual sales in the truck segments contracted in December, compared to December 2023.
The combined truck market, covering the Light, Medium and Heavy segments, decreased by 422 units in December, although some brands actually increased their year-on-year results.
This included Isuzu (1184/1060), Iveco (176/158), MAN (51/33), Renault (59/15), Western Star (12/11), Ford (11/0), Volkswagen (32/6) and Foton Mobility (3/2).
Underscoring the up and down nature of the truck market, despite recording year-on-year December decreases, Kenworth (3,744/3,655), Mercedes-Benz (1,759/1,574), Scania (1,459/1,383) FIAT (822/742), Hyundai (359/321) and Dennis Eagle (99/98) all saw their annual sales increase over 2023.
Growth in the van segments, which Mr McMullan said have rebounded since Covid-related supply shortages, offset the ongoing contraction of truck sales, securing the new industry sales record.
"By year end 2024 a total of 11,435 Vans above 3.5t GVM were sold in Australia, up a stunning 90.0 percent (5,417 Vans) over the previous year’s result," Mr McMullan said.
"25.1 percent of this increase came from the inclusion of LDV and Peugeot sales for the first time, however, even excluding these brands the segment saw sales of 8,563 in 2024, that is up 42.3 percent up, 2,545 more van sales, than in 2023."
While upbeat about the overall results and new industry record, Mr McMullan sounded a note of caution moving into the new year, raising concerns over the high average age of the Australian heavy vehicle fleet, saying it is much older than European and North American fleet averages.
"The Truck industry Council, and our members, remain concerned that the average age of the Australian truck fleet remains much older than that of Europe and North America," he explained.
"An old truck fleet is not conducive to improved safety, public health and environmental outcomes for our society."
With a Federal election due in 2025, Mr McMullan signalled possible action by TIC members, as well as possible government policy changes, may be forthcoming in an attempt to put more newer trucks into service.
"Moving into an election year in 2025, we must consider what more can be done by both industry and particularly government, to reduce the age of our nation’s truck fleet," Mr McMullan said.
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