Commercial registrations and activity

Light commercials continue to rebound

12 Sept 2022

Our take on the latest Commercial registrations and activity (Mon 12 Sept 2022)

Commercial registrations up 4.4% in August (sa)
Light commercials remain below pre-Discount levels
Medium commercials up 24%pa in the three months to August

The key numbers...

  • Commercial vehicle registrations totalled 3,955 in August, the strongest month since the introduction of the Clean Car Discount scheme in March, but remain lower than the pre-Discount period.
  • Registrations of light commercial vehicles picked up in August to 3,269, and since registrations in August 2021 were hampered by the Delta lockdown, annual growth in light commercials rose at a brisk 63%pa pace.
  • Medium commercial registrations were strong again in August, totalling 422 vehicles in the month, taking growth in the three months to August up 24%pa. Registrations of very heavy vehicles were strong too, up 28%pa in the three months to August, with 264 registrations in the August month.
  • The total number of kilometres purchased as road user charges (RUCs) in August increased 30%pa, hitting a record high 16.5m kilometres, with the ongoing temporary reductions in RUC costs driving revenue down 20%pa.
  • RUC purchases for light commercial vehicles hit a record high 13.9m kilometres in August, with the purchase of charges for heavy vehicles up 4.3%pa in the three months to August.

Total RUC purchases hit record high

Annual road user charges, kilometres
4334

...and our reaction

  • Light commercials are bouncing back from the weakness of the last few months, which was caused by the introduction of the Clean Car Discount scheme at the start of April, but registrations still remain below levels seen before the Discount scheme added fees to many commercial vehicles.
  • Demand for commercial vehicles appears strong, particularly for medium and very heavy vehicles, which both recorded strong monthly additions in August. Over the last three to six months, registrations of medium and heavy commercial vehicles for use in the construction industry have been strong, leaving registrations over the year to August 2022 up 80% and 6.1%pa respectively.
  • The high level of activity in the construction sector, combined with the discounts being applied to road user charges and easing diesel prices, means road user charges hit a record high in August.