INDUSTRY COMMENT: The Australian truck market continues to set a blistering pace as the demand for new trucks across all weight categories heralds record sales figures for 2022
Three months doesn’t make a year but if the results of the first quarter of 2022 are anything to go by, this will be a year that sets an entirely new bar for some Australian truck suppliers.
Despite the impacts of a pandemic and political grandstanding on a grand scale, the demand for trucks has never been so consistently strong, culminating in an exceptional first quarter result. In fact, the best first quarter result on record.
As Truck Industry Council chief executive, Tony McMullan, commented: “The first three months of 2022 have brought record new truck sales in Australia.
“As we have seen since the beginning of 2022, the leader of this growth has been at the heavy end of the market, with both heavy and medium-duty sectors showing strong growth, up 23.6 per cent and 12.9 per cent respectively.”
But so, too, has the light-duty category improved significantly. “Over the same period, light-duty truck sales are up by 8.4 per cent,” he remarked.
Looking at the bigger picture, McMullan said: “This level of sales growth across all truck segments will likely stem the ageing of our truck fleet, however more needs to be done to ensure that the significant level of safety, environmental and productivity features available in newer trucks permeates through our nation’s fleet.”
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After a tough 2021, Mack’s numbers have improved in the first quarter of this year
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On the eve of a federal election, however, he also took a swipe at the federal government’s lack of effort on the emissions front. “The federal government’s inaction in implementing ADR80/04, Euro VI and alternatives, is disappointing,” McMullan concluded.
Some brands, of course, achieved significantly better results than others and, predictably, Kenworth’s command of a heavy-duty sector that delivered 3,012 trucks in the first quarter was particularly strong. At the end of March, Kenworth held 21.5 per cent of the sector, delivering 647 units in the first quarter of the year while corporate colleague DAF fell to 4.1 per cent (124 units) after a record result in 2021.
Perhaps the biggest surprise, however, came from overall market leader Isuzu. Despite the fact it has no dedicated prime mover model in its vast local line-up, Isuzu Australia knocked Volvo out of second place in the heavy-duty stakes by taking 16.3 per cent on the delivery of 490 units.
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In our recent exclusive interview with Isuzu Australia chief Andrew Harbison, he made no secret of his belief that with at least one modern heavy-duty model in the stable, Isuzu was more than capable of challenging Kenworth’s long-established leadership.
Nor did Harbison deny his frustration that despite Isuzu buying UD from Volvo Group, the popular UD Quon continues to be sold through Volvo Group Australia (VGA).
“There’s no doubt in my mind Isuzu Australia could do a very, very good job of distributing a UD heavy-duty product,” he said ruefully.
Positive trend
Meantime, VGA appears to be on the road back from a few difficult years. The group’s premier Volvo brand may have lost second place on the heavy-duty ladder in the first quarter results but its 14.8 per cent on the delivery of 447 units at least points to a trend in the right direction.
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Supply issues have hurt Mercedes-Benz’s business but the truck continues to impress
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From there, it’s a big drop to 4th and 5th positions where Volvo stablemates Mack and UD held 6.6 (200 units) and 5.9 per cent (179 units) respectively at the end of the first quarter. For Mack particularly, it’s a welcome improvement on the poor performance of 2021 while for UD, it signals consistent acceptance of the versatile Quon.
All up, the combined first quarter results of Volvo, Mack and UD put VGA at the top of the corporate rankings with 27.3 per cent of the heavy-duty sector, ahead of Paccar’s Kenworth and DAF with 25.6 per cent, and both groups a long way ahead of Daimler’s Mercedes-Benz, Fuso and Freightliner trio on 12.8 per cent.
The galloping success of Mercedes-Benz and Scania over the past few years slowed to a modest canter in the first quarter of this year, notching 5.4 per cent (163 units) and 5.2 per cent (158 units) respectively as supply issues continue to dog the fully imported brands.
Yet, arguably the biggest concern for the Daimler Trucks trio is the consistently slight sales of its Freightliner Cascadia conventional. After a lacklustre 2021, accounting for 3.4 per cent of the heavy-duty market with sales of 439 units, Freightliner’s 3.1 per cent on the delivery of just 94 units in the first three months of this year was considerably less than inspiring.
From any angle, Cascadia has a great deal of ground to cover to bridge the gap with a seemingly resurgent Mack and Kenworth’s vice-like hold on the conventional class.
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Isuzu: Historic leader of the overall truck market but desperate for a heavy-duty flagship
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Among the placegetters, Japan’s Hino and Fuso each have new models on offer and appear locked in a battle for heavy-duty business with 4.4 and 4.3 per cent respectively, while Iveco’s 2.9 per cent was perhaps predictable given the pending end of local assembly at the historic Dandenong (Vic) factory.
The last three cellar dwellers in the first quarter figures are all from the Penske stable with MAN on 2.5 per cent, Western Star on 2.4 and waste specialist Dennis Eagle on a miniscule 0.2 percent.
In the medium-duty class, there were no surprises with Isuzu dominating as it always does, holding 45.6 per cent, perennial bridesmaid Hino on 30.9 and Fuso on 17.9 per cent. With these three brands accounting for 94.4 per cent of the medium-duty class, the pickings are sure to remain exceedingly slim for the remainder of the field.
There was, however, one medium-duty newcomer worth mentioning. SEA Electric recorded three sales in the first quarter of the year. A sign of the future, perhaps!
And finally, while the light-duty league continued Isuzu’s historic domination with 37.5 per cent at the end of the first quarter, the contest between Hino and Fuso remains intense with 23.6 and 21.3 per cent respectively.
From the figures so far, 2022 will be a year of record results but there’s an increasingly evident trend that the strong will only become stronger and strugglers will struggle to make the most of a hugely buoyant market.