Commercial vehicle demand in the U.S. and Canada continues to grow, but used commercial vehicle registrations still outnumber new registrations, according to Gary Meteer, director of commercial vehicle solutions for IHS Automotive told audiences at AAPEX.

There are more than 7.7 million commercial vehicles on the road in the U.S., the largest number since the 2008-09 economic downturn, according to IHS. And in Canada, commercial vehicles account for nearly 50% of total vehicles in operation with one million Class 4-8 vehicles in operation.

Meteer noted that the average age of commercial vehicles is also shifting. In 2007, the average age among Class 4-8 vehicles was 12.5 years, while today its 14.7 years. Class 6 vehicles average 20.9 years. Class 5 vehicles are younger today with an average age of 11.9 years but the segment is having historical low demand. Meteer noted, however, that with market recovery Class 5 have been in high demand for modifications and use in the wholesale, retail and service industries.

Businesses account for 90% of new commercial vehicle registrations, according to IHS. In the U.S., the strongest markets, accounting for 62% of registrations, are in the south and central regions of the country. In Canada Alberta, British Columbia, Ontario and Quebec account for more than 87% of new commercial vehicle registrations.

Of the new commercial vehicle registrations, Class 8 vehicles dominate the market with 50% of new registrations in the U.S. and 60% in Canada. And Class 8 vehicles account for nearly 43% of all vehicles in operation in the U.S., IHS noted.

Nearly half of the U.S. commercial vehicle population is accounted for by small fleets, compared to the just 22% of new vehicle registrations. This demand speaks to the ongoing strong demand for clean used vehicles that are used by small- and medium-size businesses to handle their business needs, and Class 4 vehicles are the most prominent, Meteer said.

Thirty two percent of the population is made up of medium sized fleets (11-500 units), with Class 7 trucks leading among medium fleet owners.

For fleets with more than 501 commercial vehicles, Class 7 vehicles are most prominent, with Class 8 following close behind.

Other shifts in the commercial vehicle segments include the trend to lease and rent new commercial vehicles. Today, just over 40% of Class 6 vehicles are leased, compared to less than 30% in the 2000-2013 timeframe. Leasing rates for Class 4 vehicles have also substantially increased, from less than 20% in 2000-2013 to more than 30% today. Class 7 leasing has grown little with 15.1% in 2000-2013 to 19.5% in 2014 and Classes 5 and 8 have remained flat.

Source: tirereview.com