Medium-Duty Sales Reflect Stable Demand; All Classes Rise

Navistar  medium-duty International MV series
A Navistar medium-duty International MV series truck. (Navistar)

U.S. retail sales of medium-duty trucks in April posted double-digit gains across all classes, WardsAuto.com reported.

Sales of Classes 4-7 trucks rose 17.2% in April to 22,080 compared with 18,847 a year earlier, according to Ward鈥檚. Year-to-date sales climbed 5.9% to 78,246.

Image

ACT Research Vice President Steve Tam suggested the normal rebound from typically slower sales in January and February had taken longer than March to register. 鈥淚 think it was some slack in the catch-up,鈥 Tam said about the April gains.



In related news, consumer spending in March increased $87.4 billion for the best gain in almost a decade, according to Bloomberg News.

鈥淭he consumer side is where so much of the medium-duty space is supported from,鈥 Tam said.

At the same time, ACT is looking for about 3% growth in the medium-duty market. 鈥淭hings will get a little tougher as we roll through the year. That is very much the situation we see going on,鈥 he added.

Image

In April, Class 7 trucks posted the largest jump compared with a year earlier, rising 26.1% to 5,505. Freightliner, a brand of Daimler Trucks North America, sold the most, 2,769 鈥 good for a 50% market share. International, a unit of Navistar Inc., sold the second-highest amount for a single brand, 1,220, earning a 22% share.

Class 6 sales were 7,169, an 18.8% increase from a year earlier. Ford Motor Co. led the way with 2,929,听followed by International at 1,862, and Freightliner at 1,256.

In Classes 4-5, sales climbed 11.3% to 9,406. Ford and Isuzu dominated their respective segments. Ford sold 4,596 Class 5 trucks earning a 62% share in that class. Isuzu sold 1,463 Class 4 trucks, while the next highest was Ford鈥檚 267.

Meanwhile, independent engine maker Cummins Inc. forecast its share of the medium-duty market to be 74-76%, unchanged from its prior guidance.

鈥淲e鈥檝e got eight quarters in a row with year-over-year growth in production, and this has just been a very resilient market and such a diversified market,鈥 Cummins Chairman and CEO Tom Linebarger said in a first-quarter earnings call.

鈥淲e have a nice backlog, something like 60,000 units, which is in a market we generally don鈥檛 see big backlogs, looking at from that side,鈥 he said. 鈥淚鈥檓 pretty bullish that this one looks stable, at a good level, and remaining pretty stable going forward.鈥

Image