Slattery Asset Advisory provide a comprehensive Quarterly Asset Remarketing Report. The report just released provides valuable details of the latest information on various industry sectors. Slattery’s also hold regular auctions across Australia and therefore are up to date with current sales of a wide range of vehicles and equipment.  We have summarised this report below.

Summary:

The impact of the COVID pandemic has affected every part of the Australian economy including affecting asset values in the automotive, road transport, construction, manufacturing, mining, aviation and marine sectors.

  • Truck Sales rebound slightly for all but heavy-duty trucks in June, which helps lift the falls over the first half of 2020.
  • Caterpillar Inc. has announced second-quarter 2020 sales and revenues of $10.0 billion, a 31% decrease compared with $14.4 billion in the second quarter of 2019.
  • Tractor sales for April reported a year on year increase of 40% and May reported another solid increase of 30% over the same period in 2019.
  • Sales of new cars in June 2020 were stronger than expected as buyers returned to showrooms. However, it was still a decline on last year with the 27 consecutive monthly sales slowdown.
  • Manufacturers are now worried about stock shortages with global production slowing down due to the COVID pandemic.

Automotive

Key Point Summary

  • Sales of new cars in June 2020 were stronger than expected as buyers returned to showrooms but still down on last year.
  • Manufacturers are now worried about stock shortages with global production slowing down due to the COVID pandemic.
  • June was still the 27th consecutive monthly sales slowdown, the longest slump since the Global Financial Crisis a decade ago.

The top 10 cars sold in June 2020

  1. Toyota HiLux: 6537, up 21.1 per cent
  2. Ford Ranger: 5329, up 9.9 per cent
  3. Toyota Corolla: 3008, down 4.1 per cent
  4. Mitsubishi Triton: 2721, up 1 per cent
  5. Toyota RAV4: 2632, up 7.5 per cent
  6. Mazda CX-5: 2530, down 13.1 per cent
  7. Toyota Prado: 2374, up 16.1 per cent
  8. Hyundai i30: 2368, down 29.2 per cent
  9. Hyundai Tucson: 2206, down 5.9 per cent
  10. Kia Cerato: 2016, down 28.8 per cent

Road Transport

Key Point Summary

  • The COVID pandemic and economic slowdown caused new truck sales to drop across the country in April and May.
  • However, in June we have seen the market for new truck sales come back with a 13.5% increase on the June 2019 figures.
  • The heavy duty truck market was the only segment to continue to decrease in June dropping by 12% on last year.

Agriculture

Key Point Summary

  • Agriculture, in general, has been less affected by the COVID pandemic.
  • Tractor sales for April reported a year on year increase of 40% and May reported another solid increase of 30% over the same period in 2019
  • Combine Harvesters sales have stalled with very few sales in the beginning half of the second quarter.
  • Contract harvesters are worried that COVID-19 border closures will stop movement between states at harvest which will have dire effects on farmers and the contract harvesters themselves.

Mining & Earthmoving

Key Point Summary

  • Caterpillar Inc. has announced second-quarter 2020 sales and revenues of $10.0 billion, a 31% decrease on last year.
  • Construction has not fared as badly with worldwide figures down 12 per cent in the same period.
  • Demand for second-hand equipment has been quite strong through April, May & June with government stimulus packages and imported new equipment being more expensive.

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