Commercial vehicle demand in U.S. and Canada strengthens
The recovery in the commercial vehicle market in the U.S. and Canada is largely driven by the business community. U.S. businesses account for more than 90 percent of new vehicle registrations so far this year, according to IHS Automotive, and the south and central regions of the country are the strongest markets, representing (more than 62 percent) of new vehicle registrations so far this year.
In Canada, four provinces - Alberta, British Columbia, Ontario and Quebec - account for more than 87 percent of new commercial vehicle registrations and additional growth is expected.
GVW 8 vehicles continue to dominate both the U.S. and Canadian markets, with more than 50 percent share of new registrations in the U.S. and even greater share in Canada, at more than 60 percent.
With more than 7.7 million commercial vehicles on the road in the U.S., the market here is at its highest levels since the 2008-2009 economic downturn. There are more than one million GVW 4-8 vehicles in operation in Canada with Ontario and Quebec accounting for almost 50 percent of the total vehicles in operation.
IHS Automotive also reports that the average age of commercial vehicles in the fleet is shifting. In 2007, the average age among GVW 4-8 vehicles was 12.5 years.
Today, it is 14.7 years, with GVW 6 vehicles averaging 20.9 years, the highest in the fleet. Conversely, GVW 5 vehicles are younger now - with an average age of 11.9 years, the youngest in the fleet - and the result of this segment of the commercial vehicle market having historical low demand. ■