TIC looks to Budget and interest rates in hope


Circuit-breaker needed for heavy duty trucks, McMullan indicates

 

The Truck Industry Council (TIC) is hoping record low Australian interest rates might come to the aid of heavy truck sales.

Commenting on the heavy sector’s continued poor showing, especially compared with lighter trucks and vans, the TIC hopes easier times politically and monetarily will come to its aid.

"It is encouraging to see another good result in April to follow the solid March figures, however as in March, the April result was brought about by some good light- and medium truck sales and again some exceptional light-duty van sales, but again heavy truck continue their decline," TIC CEO Tony McMullan writes.

"It is particularly concerning that heavy truck sales are showing no sign of recovery.

"I can only hope that the interest rate cut earlier this week will lead companies to reconsider their larger capital purchases, including that of heavy trucks.

"Further, I hope that the Federal Government’s Budget … contains measures to stimulate business confidence, while offering incentives for the take up of new trucks, Heavy Trucks in particular."

Looking at other segments, medium-duty trucks posted better sales for April, 477 truck sales, a 10.9 per cent or 47-unit gain over April 2014.

The April result has been enough to boost the year-to-date Medium segment sales ahead of the same period last year by just 1.5 per cent, or 27 trucks.

Light duty truck sales have seen good growth in 2015 with April posting a slight rise in sales for the month.

With 688 light trucks delivered, they were up 5.7 per cent (37 trucks) over April 2014.

 For the year light duty sales are ahead of the same period in 2014 by 9.7 per cent, or 240 trucks.

The "star performer for the month of April and for the year-to-date" was light-duty vans, TIC says.

They posted "another boom month of sales" in April with 488 units delivered, "up an amazing 45.2 per cent, or 152 vans, compared with April 2014". 

The year-to-date tally stands at 1,702 vans, this is up 28.7 per cent (380 vans) compared with the same period in 2014.

"This is the strongest first four month van result ever posted, eclipsing the previous best mark set in 2008," TIC says.

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