June truck orders decline amid overcapacity, elevated rates

Orders for Class 5 to Class 8 trucks decreased in June as freight rates and overcapacity further exacerbated the overall slowdown in the second quarter. 

Preliminary North America Class 8 net orders in June were 14,800 units, down 37% month over month and 12% year over year, according to new data from ACT Research. While Q2 is usually a slower quarter, market conditions continue to pressure sales, Kenny Vieth, president and senior analyst at ACT, said in a company statement.

“Even in good years, Q2 typically delivers below-trend orders, while Q4 orders can trigger optimism at the bottom of the cycle,” he said. “With the long bottom in freight volumes and rates continuing in the most recent data from [DAT] amid lingering market overcapacity, for-hire carriers’ financial performance has been dismal.” 

Meanwhile, Class 5 to Class 7 orders were 19,000 units in June, down 1.6% MoM and 3.3% YoY, according to ACT Research. 

“Entering the historically worst time of the year for orders at the bottom of tractor buyers’ profitability cycle is producing results in line with expectations,” Vieth said. “At the same time, the brightest spot in the economy has been consumer services spending, helping to support steady medium-duty truck demand.” 

Electric sales pick up 

Sales of battery-electric and hydrogen fuel cell vehicles increased in the second quarter at Nikola Corp. and Daimler as customer adoption of EVs continued to climb. 

Nikola reported it sold 72 Class 8 Nikola hydrogen fuel cell electric vehicles (FCEVs), exceeding its initial sales guidance of 60 units. The company’s hydrogen fuel cell EV sales of 72 units in Q2 increased 60% compared with the company’s battery-electric EV sales in Q2, after the company began production of FCEVs on Sept. 28. 

“We have maintained our 2024 momentum with solid wholesale numbers, new customers such as Walmart Canada, and repeat customers like 4GEN and IMC, purchasing vehicles through our dealer network,” Nikola Chief Executive Steve Girsky said in a statement. “We are firmly on the field and are continuing to secure our first-mover advantage in zero-emissions Class 8 trucks in North America, as well as with our HYLA hydrogen refueling solutions.” 

Daimler reported sales of 648 battery-electric vehicles in the quarter, an increase of 69.2% YoY. In contrast, Daimler Truck sold 112,195 total trucks and buses in Q2, down 14.9% YoY. 

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