Quarterly Report – Q2 2023

Quarter 2 continued a strong start to the year, particularly in the heavy vehicle industry with records being smashed in June. The Truck Industry Council’s TMARK sales data for June and the first half of 2023 reveals a remarkable surge in new truck and van sales, propelling the overall market up by an impressive 16.8%. However, amid a landscape of labour shortages, a notable trend has emerged, with drivers becoming increasingly discerning about the trucks they operate, resulting in a decline in aged trucks.

The Australian mining and construction machinery manufacturing industry is poised for substantial growth at an annualised rate of 4.9% over the next five years. Our report delves into the factors driving these developments and explores the impact of several significant civil projects currently underway. Furthermore, we delve into the challenging market conditions faced by Toyota, which has experienced a 24% decrease in volume due to supply constraints, leading to a notable shift in market share dynamics within the electric vehicle and hybrid segments. Take a look through the full report where we analyse the key highlights and trends shaping the industry landscape during the second quarter of 2023.

The quarter in short:

• The Truck Industry Council’s TMARK sales data for June and the first half of 2023 reveals significant growth in new truck and van sales. The overall market is up 16.8% and marks a record for the largest sales month ever.
• Aged trucks have declined this quarter. Interestingly, with the labour shortages, drivers are being selective about who they drive for, and the quality of the truck will be a determining factor.
• The mining and construction machinery manufacturing industry in Australia is expected to grow at an annualised rate of 4.9% over the next five years.
• Several significant civil projects are underway, including the Bruce Highway (QLD) upgrade program, the Coffs Harbour Bypass (NSW) construction, and the Newell Highway Heavy Duty Paved Upgrade (HDPU). With a combined value reaching billions of dollars driving earthmoving equipment demand.
• Year-to-date tractor sales are 16% behind the same period last year.
• Toyota is down 24% in volume due to poor supply, causing its market share to tumble to 15.9 share points – well below its 20 share point benchmark.
• EVs outsold hybrids (38,313), largely due to Toyota’s lack of supply on RAV4, Camry and others.
• We have been awarded the AVAA Online Auction accreditation by the Auctioneers and Valuers Association of Australia (AVAA).