The commercial vehicle industry is seeing strong growth, despite economic uncertainties, according to Work Truck Solutions which released its commercial vehicle market analysis on July 11 for the second quarter.
The commercial vehicle market, consisting mainly of work trucks and vans, is seeing significant upward trends in inventory and sales.
"For dealers and the industry at large, success in adapting to these changes lies in the usage of digital tools and making informed decisions guided by data specific to commercial operations," said CEO of Work Truck Solutions Aaron Johnson in a recent news release.
Inventory Up By 25%
New average on-lot inventory grew 24.8% quarter-over-quarter (QoQ) and 70.5% Year-over-Year (YoY).
Continuing demand combined with increasing inventory suggests sales can be expected to grow the rest of 2023. Evidence of the turmoil in the automotive supply chain over the last year is seen in the dramatic 35.3% YoY used on-lot inventory per dealer increase.
EV on-lot inventory also saw an upward trend with a 9.7% QoQ increase in new hybrid/electric commercial vehicles per dealer, and a 13.3% increase YoY.
Prices Start Falling
Average prices of new commercial vehicles fell 2.1% QoQ after experiencing three straight quarters of increase. However, average prices YoY were still up 3.4%. Average prices of used commercial vehicles showed an increase of 2.1% QoQ but a 7.6% YoY drop.
Sales Grow By a Fifth
Sales of new vehicles enjoyed a substantial 20.8% increase in both QoQ and YoY. The large influx of inventory hitting lots in Q1 was likely responsible for the increased movement in Q2, as dealers could fulfill more of the pent-up demand for work trucks and vans.
Used vehicle sales also had a strong showing when examining YoY numbers, with average sales of work trucks/vans per dealer increasing 42.3% YoY, but a slight drop QoQ of 3%.
The fact that YoY used work trucks and vans posted such positive sales numbers, despite the median mileage climbing 5% YoY demonstrates their important position in the commercial market.
Hybrid/EV sales have remained cautiously steady over the last five quarters, showing a decent appetite for alt-fuel options within the market.
However, lagging availability and minimal charging infrastructure contribute to a somewhat guarded adoption by business owners.
Days To Turn Dip Slightly
After three straight quarters of increasing Days to Turn (DTT) for new vehicles overall, data showed a slight dip with a 2.3% QoQ decrease, while the YoY DTT increased by 48.2%.
Used vehicle movement also improved in Q2 with an average DTT QoQ decrease of 9.6%, although YoY DTT increased by 25%.
Originally posted on Automotive Fleet