A Softer Start to 2025, but Market Remains Strong
After two years of record-breaking sales, Australia’s truck and van market has eased off in Q1 2025. The Truck Industry Council (TIC) reported a total of 10,356 new trucks and vans sold between January and March — a 6.9% decrease compared to Q1 2024. While this marks a cooling across all segments, it’s worth noting that this is still the third strongest first quarter result on record, following the exceptional starts to 2023 and 2024.
This report is based on official monthly sales data released by TIC and assesses activity across all key categories: Heavy Duty (HD), Medium Duty (MD), Light Duty (LD), and Light Duty Van (LDV). It covers the period from January to March 2025.
Q1 2025 vs Q1 2024: A Market-Wide Decline
Each of the major truck segments posted lower results than the same quarter last year, continuing the softer trend observed at the end of 2024. However, the declines remain modest overall, with some bright spots — particularly in March van sales — hinting at ongoing demand.
TIC CEO Tony McMullan acknowledged the slowdown across all heavy vehicle categories but noted that the result still reflects a resilient market.
“All segments are down thus far in 2025 with the most noticeable decline happening at the heavy end of the market. However, despite slowing sales this year when compared to the record sales witnessed in 2024, the market remains quite strong, with the quarter one 2025 result the second best start to a year on record,” said Mr McMullan.
With the 2025 federal election approaching in May, McMullan also acknowledged that industry confidence will be tested in the coming months.
Segment-by-Segment Breakdown
Heavy Duty (HD): Leading the Downturn
The heavy end of the market saw the steepest decline this quarter. A total of 3,380 heavy duty trucks were delivered between January and March, down 10.8% year-on-year (408 fewer units). In March alone, 1,363 trucks were sold — an 11.1% decrease compared to March 2024.
Heavy duty trucks remain the dominant category in terms of overall market share, but the pace of sales has clearly slowed from the record highs of recent years.
Medium Duty (MD): Still Stable, but Softening
Medium duty trucks recorded a total of 1,664 units sold in Q1 — a 4.4% decline compared to the same period last year. March MD sales came in at 623 units, down 4.6% year-on-year. While this segment had posted solid growth in 2024, the softer start to 2025 suggests a general levelling out of demand.
Light Duty (LD): Downward Trend Continues
Following a strong 2023 and a slight dip in 2024, light duty truck sales continue to trend downward in 2025. A total of 2,953 LD trucks were delivered in Q1 — a 7.4% drop compared to Q1 2024. March sales also fell by 7.4%, with 1,177 units sold (94 fewer than in March last year).
Despite the decrease, light duty trucks remain an important category, especially in urban and last-mile delivery applications.
Light Duty Vans (LDV): A March Upswing, but Quarterly Dip
The light duty van segment was the only category to post monthly growth in March, with 962 units sold — a 9.1% increase compared to the same month last year. However, the overall Q1 result still came in slightly below 2024 levels. Total LDV sales for the quarter reached 2,385 units, down 2.1% year-on-year.
Following a record-setting 2024, this segment remains one to watch, particularly with growing demand for commercial vans in both urban and regional markets.
Industry Reflections and What’s Ahead
While the first quarter of 2025 reflects a general softening across all categories, the broader context remains positive. This is still one of the strongest Q1 performances the industry has ever recorded. The fact that van sales posted growth in March suggests there is still momentum behind key segments, even as broader economic conditions shift.
The coming months — particularly in light of the upcoming May 3 federal election — will be crucial for gauging how the market continues to perform through potential uncertainty.
Trust Retain Media for Industry-Leading Insights
With 2025 off to a steady but slower start, we’ll continue tracking sales trends and market shifts as the year unfolds. Stay tuned for our Q2 update and explore our other market reports for more insights across Australia’s automotive sectors.
Retain Media provides this data “as is” for informational purposes only and accepts no liability for decisions made based on this reporting. Users are encouraged to use this data as one of multiple data points in their market analysis.
