Work Truck Solutions Q2 2024 Commercial Vehicle Market Analysis: Evolving Inventory and Alternative Fuel Trends
23 Julio 2024 - 9:12AM
Work Truck Solutions®, the leading commercial vehicle authority,
released its Q2 2024 Commercial Vehicle Market Analysis today. The
Q2 data for new and used vehicles highlights that inventory levels,
pricing, and sales numbers are, for the most part, following
persistent trends. In contrast, the landscape of alternative fuels
in the commercial vehicle market remains in flux.
Sales
- New: Average sales decreased by 4.8% QoQ and 7.3% YoY.
- Used: Average sales increased for the first time since Q1 2023,
showing 2.9% QoQ growth, though it's still down 17.6% YoY.
- Hybrid/Electric work trucks and vans: Average movement of new
hybrid/electric work trucks and vans increased significantly, up
35.0% QoQ and 28.6% YoY.
Commercial Inventory
- New: On-lot inventory per dealer continued its upward
trajectory, growing 9.7% QoQ and a substantial 66.6% YoY with
quarterly growth being primarily early in the quarter, indicating a
need to continue to closely monitor these numbers to see if a new
trend is developing, or it's an anomaly. The growth was evenly
distributed between medium-duty (51.8% of inventory) and light-duty
(48.0% of inventory) vehicles.
- Used: On-lot inventory stabilized QoQ, following several
quarters of decline, though it remains 18.5% lower YoY.
- Alternative Fuels: A significant 46.5% decrease in new stock of
hybrid/electric work trucks and vans QoQ was observed, marking a
25.8% drop YoY.
Prices
- New: Average prices for new work trucks and vans increased
slightly by 0.6% QoQ and more substantially by 6.8% YoY, reaching a
record $58,470.
- Used: Average prices for used work trucks and vans experienced
a 1.7% decrease QoQ and a more pronounced 6.1% decline YoY,
averaging $33,804.
- Work truck and van BEVs: The average price of battery electric
vehicles (BEVs) decreased by 3.7% QoQ (from $53,612 to $51,643) and
11.0% YoY.
Days to Turn
- New: Average Days to Turn (DTT) increased significantly QoQ
(14.5%) and YoY (40%), reaching 119 days, the highest average level
since 2020, largely due to increased inventory as well as
increasing interest rates.
- Used: DTT remained stable QoQ and decreased 8.3% YoY, with an
average of 55 days, suggesting a leveling-off trend.
Takeaways
Data from the commercial vehicle market is revealing an
inexorable swing from the days of scarce inventory, with many of
the corresponding ripples that come with increased
availability.Sales Dynamics: New vehicle sales
continue to slow down, while used vehicle sales showed a slight
uptick. Interestingly, the movement of hybrid/electric vehicles
increased significantly.Mixed Inventory Trends:
The new work truck/van market continues to experience inventory
growth, especially in medium-duty vehicles, while used inventory
has stabilized. However, the electric vehicle segment saw a
substantial decrease in new stock.Price
Adjustments: Prices for new and used work trucks continue
to adjust, with slight increases in new vehicle prices and more
significant decreases in used vehicle prices. Electric vehicle
prices also declined both QoQ and YoY.Vocation
Types: Among the commercial van categories—new cargo, box,
passenger, service-utility, upfitted-cargo—cargo and passenger
continued a general upward trend in availability and movement,
while the others continued a general upward trend in on-lot
inventory, but a generally flat or declining sales trend. All van
types are experiencing increased DTT, both QoQ and
YoY.Chassis Types: New Cab Chassis inventory
continued to climb both QoQ and YoY, while Cutaway Chassis
inventory declined both QoQ and YoY, and Stripped Chassis
availability was erratic. However, movement among all three chassis
types either dropped or remained flat and are sitting on the lot
longer.“Although inventory is not back to pre-pandemic levels,
we’re seeing indicators that suggest a run toward a buyer’s market
is in the making,” said Aaron Johnson, CEO of Work Truck Solutions.
“We noted the data shift in our Q1 2024 data report, and we can
reasonably expect these trends to continue. Of course, all of this
is subject to emerging local and international affairs, which
impact trajectories.” Regarding EVs specifically, Johnson
commented, “With many OEMs producing fewer EVs, and sales spiking
over the last quarter as buyers take advantage of government
incentives, we’ll have to watch to see if this becomes a pronounced
trend following the November elections.”Wrapping up, Johnson noted,
“The way end-users shop has evolved into a highly digital affair
and is certain to remain that way, so it is wise for commercial
vehicle dealers and upfitters to embrace modern merchandising
technology.”About Work Truck Solutions
Work Truck Solutions is the smart technology platform that
serves the Commercial Vehicle Industry. End-to-end solutions such
as Comvoy.com, the national commercial marketplace which includes
the commercial vehicle-centric advanced fuel resource center
NuPropel, and CV Showroom™, the smart digital catalog of commercial
vehicles not in stock, connect the dots between commercial vehicle
buyers, dealers, manufacturers and upfitters. This innovative
technology is the one-stop inventory management, operational
analytics, and digital marketing solution that maximizes commercial
sales, customer relationships and profitability.
- Average New On-Lot Commercial Vehicles per Dealer
- Average Used On-Lot Vehicles per Dealer
Steve Henning
Work Truck Solutions
530-718-1885
steve.henning@worktrucksolutions.com