The demand for new heavy goods vehicles (HGVs) is witnessing a significant upswing as businesses aim to enhance efficiency within their transport operations. According to data released by the Society of Motor Manufacturers and Traders (SMMT), truck registrations increased by 13.5% in 2023, building on the trend established in the previous year. Kevin Gardner, Commercial Manager at BPI Asset Disposal Solutions, noted that this growth culminated in the sale of 46,227 new trucks, marking the highest annual total since 2019.
A closer look at HGV sales reveals a robust market characterised by an increase in rigid and articulated trucks. Rigid trucks, which are integral in many logistical applications, accounted for 52.9% of the new sales, with a notable rise of 14.7% to 24,439 units. Additionally, articulated trucks also saw an impressive demand growth of 12.2%, reaching 21,788 units. The increase in box van sales, up by 19.2%, indicates a rising demand for vehicles used for distributing chilled and fragile goods, particularly in urban areas.
Driving this trend is the dual impact of stringent clean-air legislation and escalating fuel costs, both of which compel businesses to invest in new vehicles equipped with emerging low- and zero-emission technologies. Despite the increase, electric and hydrogen vehicle registrations only accounted for 234 units in 2023—though this figure represents an extraordinary rise of 265.6%.
Furthermore, the economic viability of new HGV investments is closely tied to the sale proceeds of aging fleets. As the market for new HGVs grows, older models face accelerated depreciation, prompting fleet owners to reassess their disposal strategies. Gardner emphasised, “As companies upgrade their fleets to meet stringent environmental standards and benefit from improved fuel efficiency, the value of traditional HGVs is driven downwards.” He advises businesses that it is "now the critical time to sell your ageing vehicle before its value diminishes," allowing owners to maximise returns on investment while acquiring more environmentally friendly replacements.
Traditionally, the process of disposing of HGVs has presented a myriad of challenges for trucking firms, often requiring extensive logistical efforts and marketing acumen to ensure profitable sales. Within this context, many operators are now turning to asset disposal specialists, who streamline the process by cataloguing vehicles on-site—complete with condition reports and photography—thus releasing fleet managers from the burdensome tasks associated with the sale.
Once the vehicles are catalogued, these specialists employ advanced marketing strategies, including leveraging extensive databases of potential buyers. Tactics such as targeted email campaigns and advertising through industry-specific channels help engage with interested parties in preparation for a sale. The rise of online auction platforms has also transformed the way trucks are sold, allowing sellers to set reserves and showcase their offerings to a wider audience.
Moreover, by participating in the circular economy, companies are able to unlock hidden value in their unwanted vehicles, aligning disposal methods with sustainable practices. This not only enhances the company's reputation but positions them advantageously in a logistics market where sustainability is increasingly important for customers.
As the commercial vehicle landscape evolves toward low-carbon solutions, asset disposal specialists are expected to play an increasingly pivotal role. Given the current trajectory of new vehicle sales, further depreciation of existing HGVs is probable, thus highlighting the urgency for fleet owners and managers to explore effective disposal methods to secure the best possible return on their assets.
Source: Noah Wire Services