Heavy trucks lead market recovery

Maximum-weight trucks are driving the recovering LGV market, with the four leading manufacturers, including DAF, in the ascendency.

A boost provided by September’s new ‘65’ registration plates, which saw new truck registrations rise by nearly 68 per cent compared to September 2014, confirmed the recovery of the UK’s heavy commercial market.

According to figures released by the Society of Motor Manufacturers & Traders (SMMT), registrations are up by over one third on the year to date compared to the previous year, with 30,777 new trucks being put on the road in the period January – September.

Pent-up demand for new vehicles has combined with continuing low interest rates and increasing confidence in the performance of Euro 6 technology to accelerate demand for new vehicles.

But the appetite for new vehicles is not evenly spread. The lack of confidence in the supermarket sector (Tesco has just confirmed that it is to sell off much of its landbank for residential housing, rather than open more outlets) is probably the reason behind an 11.5 per cent fall in demand for two-axle tractors.

Meanwhile, registrations of three-axle tractors soared by almost 55 per cent. The numbers speak for themselves – of the 14,414 new tractors put on the road so far this year, just 1,300 were 4x2s.

It’s pretty much the same story in the rigid sector: there is most demand for heavier trucks. The sector over 16-tonnes gvw saw 10,490 registrations, while just 5,873 new trucks were registered in the 6-16-tonne bracket.

The market is also reverting to norm in terms of the fortunes of the individual manufacturers, with DAF, Mercedes-Benz, Volvo and Scania enjoying most of the growth, while the weaker three of the ‘seven sisters’ – MAN, Iveco and Renault Trucks – failed to keep up with the recovering market.

Isuzu Trucks and Fuso both flatlined: these lightweight chassis suffered less than most in the worst of the recent recession, hence they don’t have spectacular troughs to recover from.

The rest of the year looks like more of the same. Although new models and attendant marketing promotions from DAF and Iveco may well provide at least a temporary boost to the 7.5-tonne market, it’s increasingly clear that diverse factors – including the driver shortage and continuing emphasis on industrial and construction-related transportation rather than supermarket retail as the wider economy remains aligned more towards earning than spending – are likely to drive the demand for heavier and more productive vehicles.

UK new truck registrations (over 6 tonnes gross weight)