First signs of recovery in UK’s new truck market

September saw new truck registrations in the UK reach a monthly high for 2014, as the market showed its first signs of recovery after the Euro 6-induced slump at the start of the year.

The Society of Motor Manufacturers & Traders reported 4,795 new trucks of over six tonnes gross weight registered. Although this is nearly 9.5 per cent down on September 2013, it is thought by many to herald the start of a return to something like normality in a market that is still nearly 23.5 per cent down year-on-year with just 22,411 trucks registered.

Speaking exclusively to Transport Operator at Hanover’s IAA Show, Scania’s chief executive Martin Lundstedt (pictured, below) said: “In the UK we are seeing the first little positive signs of recovery. The UK’s economy has closer links to the economy in the USA than does the rest of Europe’s and there is no doubt that you are seeing a benefit of that.

“During the rest of the year, the situation in the European Union will get slightly better, and the UK will be slightly better than the rest of the EU.

“There is confidence returning to the UK. Look at the skyline of London – all the cranes!”

Mr Lundstedt cautioned that expectations had to be recalibrated.

“We will not see the market levels achieved in 2006-08 again for a while.”

DAF Trucks’ UK managing director Ray Ashworth was, if anything, more upbeat.

Speaking to Transport Operator at the Leyland Trucks Assembly Plant in late October, he said that he anticipated this being a very strong month, thanks in part to the whole vehicle type approval deadline.

“All the manufacturers’ sales have now stabilised, and fleet buyers are back in the market after the disruption of the Euro 5 run-out.”

He reiterated that the “new normality” of the truck market was in the region of 40,000-42,000: some 10,000 units per annum down on the years up to 2008.

“If we smooth out the Euro 5 disruption by combining 2014 and 2013 we will see 82,000 new truck registrations over the two years,” he predicted.

“The next three to four years are relatively free of legislation which is likely to distort the market in the way that the introduction of Euro 6 trucks did, so we will see a calmer market with no peaks and troughs created by legislation.

“Normality will return in January, and I predict a market of between 40,000 and 41,000 units for 2015.”

Mr Ashworth anticipated a strong finish to 2014 for DAF.

“DAF’s UK sales are 70 per cent rigid trucks, so we will benefit more than most from the whole vehicle type approval deadline,” he asserted. “This strong performance should see us take 28 per cent of the market at the year-end.”