The Commercial Motor Vehicle Consulting’s (CMVC) CV Parts Aftermarket Sales Leading Indicator (PLI) continued its downward trend in July, falling 0.7% in July from June, signaling falling parts aftermarket sales in the coming months, excluding changes in parts prices.
“The rationalization of capacity in linehaul applications has reduced the number of trucks operating in the linehaul segment and increased the supply of idled trucks on the used truck market,” said Chris Brady, president of Commercial Motor Vehicle Consulting. “The linehaul segment makes up a large share of the Class 8 truck population, so a decrease in the number of trucks depreciating in linehaul applications coupled with how linehaul trucks generally deprecate at faster rates than trucks in vocational and local/regional applications is weighing on parts aftermarket sales.”
In addition, Brady also noted that the supply increase of idled trucks on the used truck market is weighing on parts aftermarket sales, especially because they continue to consume parts without depreciating.
“A recovery in CV parts aftermarket sales will require an increase in truck utilization in the linehaul segment that accelerates the rate at which trucks depreciate and decreases excess capacity, thereby putting upward pressure on fleets to expand capacity, resulting in increasing numbers of trucks operating linehaul applications,” the CMVC president concluded.
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