Limited inventories of new vehicles are continuing to strain used truck availability on the resale channel. While the chip shortage is often the headline, there are really many reasons for the limited supply including resurging post-pandemic demand and worker shortages¹. Besides the pricing increases, this lack of inventory has contributed to, which we have discussed in this blog previously, these constraints are also leading to some real shifts in the brands of trucks buyers are likely to see for sale. Price Digests analysts recently examined resale data for June 2021 and compared it to June 2020. The results of this analysis truly highlight how these overall truck trends are on full display in the resale data. Both medium and heavy truck listings saw incredible year-over-year swings, showcasing just how much of an impact the supply crunch is having.

Medium Duty Trucks

In June 2020, International accounted for more than one-third (37.1%) of the used medium duty truck listings. One year later that market share has been slashed nearly in half, with International making up 19.4% of the listings in June 2021. Overtaking International for the top spot in June 2021 was Ford, with 31.0% of the listings—a dramatic increase over its 13.1% market share one year prior.

Looking further down the list, other standouts include GMC, Chevrolet, and Hino. GMC and Chevrolet together were the third most prevalent medium truck brands in June 2021 with 17.7% of listings; more than double what the two brands had in June 2020 (6.0%). Hino went in the opposite direction and were a scarce commodity in June 2021, with only 4.1% of market share. Last year, Hino’s trucks were in the number two spot on the list with 18.6% of listings.

So, what explains these incredible year-over-year shifts? As we mentioned above, and as we will see is the case for heavy duty trucks as well, supply chain headaches are a big reason. In the case of International, one of its main engine suppliers (Cummins) has faced production delays and if global semiconductor supply doesn’t return to normal in the second half of 2021 then the company has stated the delays will likely continue². The case with Hino is a bit different³. In December 2020 the company announced that it would be shutting down production until October 2021 due to “challenges in the required U.S. engine certification testing process.”

The constraints on producing new trucks are having ripple effects in the used listings. As there are delays with delivery of new vehicles, fleets are not able to replace their trucks at the same pace they normally would, which translates to them not listing those vehicles for sale as quickly as they might otherwise.

Heavy Duty Trucks

Freightliner had the most heavy duty truck listings in both June 2020 and June 2021, although the brand’s percentage did dip almost 8% year-over-year (from 39.0% in 2020 to 31.1% in 2021). Kenworth overtook International for the number two spot in June 2021, with Kenworth’s market share increasing from 12.6% to 16.6% while International’s stayed reasonably consistent (dropping only slightly year-over-year from 13.5% to 13.2%).

Further down on the list, Volvo’s share of resale listings was cut nearly in half (from 11.0% in June 2020 to 6.6% in June 2021), bumping it from its number four spot on the list in June 2020 to its six spot in June 2021.

As was the case with medium duty trucks, supply chain issues and production constraints have slowed production and delivery of new trucks and thus the flow of used trucks onto the resale channel. Beyond the headaches already discussed, manufacturers also still have the traditional causes of disruptions, such as has been the case with Volvo⁴. The manufacturer said recently that it would begin rolling out vehicles again at its New River Valley plant in Dublin, VA after production was halted in relation to a strike that began in April 2021.

About Price Digests

Since 1911 Price Digests, a division of Informa, has served the vehicle data needs of the insurance, finance, government, and dealer markets through its portfolio of VIN decoding, specifications, and market value data solutions for the commercial truck, passenger vehicle, marine, powersport, and recreational vehicle asset classes. Our data insights help enterprises drive competitive advantage through asset data workflow efficiencies while also playing a pivotal role in decisions surrounding the purchase, valuation, operation, and risk mitigation of assets. Price Digests data is powered by The Truck Blue Book.

Articles Referenced: 

[1] 2021 trucking forecast: ‘Partly cloudy’ with a chance of computer chips. Retrieved July 16, 2021.  

[2] Cummins working to mitigate impact of global chip shortage. Retrieved July 16, 2021. 

[3] Hino Motors shuts down NA production until October 2021. Retrieved July 16, 2021. 

[4] Volvo will restart truck production amid ongoing strike. Retrieved July 16, 2021.