Commercial registrations and activity

Post-lockdown spike gives way to pessimism for commercial regos

12 Oct 2020

Our take on the latest Commercial registrations and activity (Mon 12 Oct 2020)

New light commercials fell 25%pa in September
New medium commercials fell 23%pa
New very heavy commercials fell 8.7%pa

The key numbers...

  • Total new commercial registrations slumped 24%pa in September, leaving new commercial registrations 11%pa lower for the September quarter.
  • New light commercials saw the largest decline, down 25%, and have deteriorated significantly since the post-lockdown surge of 5.6%pa growth in July.
  • Total used commercial registrations grew 5.5% in September, led by strong growth of 31%pa for medium commercials.
  • Total road user charges saw a small recovery, growing 2.7%pa in September, although total RUC purchases since April are still down 8.8% from the same period in 2019.

New light commercial registrations

Annual running total
3717

...and our reaction

  • The number of new commercial vehicle registrations has continued to deteriorate, particularly for light commercials.
  • Light commercial registrations are swayed by both the household and business outlook because of their multipurpose nature. The resurgence in July, driven by households spending their lockdown savings, has wavered, and the bleak business outlook has also caused light commercial sales to slow.
  • Facing uncertain times businesses are looking to cut costs where possible. Growth in used commercials while new commercials tumbled could be an example of this caution.