x
Close Cookie Popup
Cookie Preferences
By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in our marketing efforts as outlined in our privacy policy.
Recent statistics from the Society of Motor Manufacturers and Traders (SMMT) noted that the sale of new HGVs saw modest growth in the second quarter of 2024 with new registrations totalling 11,469. This represents a 2.6% increase from the previous year. This modest growth indicates that the haulage industry and automotive sector more broadly continue to show resilient growth, but this growth may be plateauing as uncertain and challenging times loom.
The previously noted statistics indicated that four of the five most popular body types saw market growth (tractor unit, box van, curtain sider, tipper and refuse), but only the registration of new tractor units declined. The specific geography of these statistics revealed that the majority of new registrations were completed in England (9827) whilst Wales (354) registered the fewest. The largest net increase was in Wales. Analysts from EY have noted that these figures demonstrate that haulage and automotive sectors continued demonstrating resilience following a period of consistent growth, but noted that the decline in registrations of new tractor units across the United Kingdom is indicative of some of the challenges faced by long haul operators.
This consistent growth may be explained by both an increased availability of new vehicles as many manufacturers overcome the supply chain issues that have plagued the post-COVID automotive world and an increased demand as a result of the rise of e-commerce. However, as the regulatory deadline for transition to zero emissions vehicles looms and the cost of living crisis impacts consumer demand for e-commerce, operators may be cautious to invest in diesel tractor units.
More recent evidence demonstrates that this period of consistent growth has plateaued. The SMMT has noted that the registration of new HGVs declined by 6% in Q3 of 2024. During this period, only the registration of new box vans increased. The specific geography of new registrations revealed that England registered the most (9335) whilst Northern Ireland registered the fewest (287). The largest net decrease in registrations was in Scotland. Mike Hawes - the Chief Executive of the SMMT noted:
“After last year’s surge in truck demand, one quarter of decline is not a cause for serious concern”.
Whilst the need for fleet renewal remains constant with the previous year, it is noted that concern over the looming regulatory deadline for the transition to zero emission vehicles may lure haulers away from investing in new long-term assets. In addition, the purchase of new eHGVs has been underwhelming as operators continue be cautious over the range of eHGVs and the associated charging infrastructure. At the time of publishing, the present registration of eHGVs (with a gross weight of 6 tonnes and above) was just 51 - this represents a 47.4% decrease on the previous year. Consequently, outstanding concerns with government regulation and eHGVs themselves appear to be directly negatively impacting sales.
The plateauing of new registrations represents the conclusion to a year of dramatic demand. This trend is generally shared by the automotive sector as a whole and appears to reflect concerns with looming regulatory deadlines and eHGVs more broadly. The consistent underperformance of the eHGV market must be addressed by governmental and non-governmental organisations to improve sales and ultimately reduce carbon emissions.
