I think you combine that with the fact similarly to the auto side for the last three years, there’s been a lower supply of vehicles coming into the marketplace. Certainly, Roger talked about it on the maintenance cost side for PTS, a lot of our carriers on retail truck side experienced the same thing. So their maintenance costs are up as well, and they’re going to be eager to replace those vehicles. So over the last two years, the sales have been driven by a robust rate environment. I think this year certainly and going into next year, it’s going to be driven by replacement demand to get older higher-cost units from an operating standpoint out of the marketplace. And so, you see that with the Q2 sales up 13% for the industry in the opening comments, we saw were up 29% for the quarter on a retail sales basis.
And so, I think the fundamentals right now for us bode well for certainly this year and looking into next year. The last comment I would make on the freight rates certainly, the spot market has come down from its historical highs, and we feel it bottomed out. We think there could be some more correction on the contract side through the end of the year. But the forecast is for freight rates to start trending back upward over the next six months. And so, as the freight cycle recovers, I think that’s going to act as a natural buffer to the retail sales and the commercial truck side.
Daniel Imbro: Thank you so much for color. That’s all everybody.
Richard Shearing: All right. Thanks, Dan. Yes. Great.
Operator: And next, we go to David Whiston. Please go ahead.
Roger Penske: Hi David.
David Whiston: Hi, everyone. I guess first on PTS. I was just curious on Slide 27 the – if you could break up the difference for me between full service lease and maintenance versus commercial rental?
Roger Penske: You’re talking to me. The maintenance on the equipment you’re saying.
David Whiston: Your pie chart is full service lease and maintenance. And I mean, are you referring to truckline versus commercial rental truck facing compensation that’s why I am asking?
Roger Penske: No, all our maintenance, when we talk about maintenance, it’s not only on leasing on our logistics contract makes business and our consumer and our commercial rental fee. That’s our total maintenance number. So it includes hires and maintenance. So that’s the total number that you saw. It was up $65 million in the quarter.
David Whiston: Okay. And on the M&A market, do you expect to stay more skewed for the rest of the year, if you do a deal on the truck side or do you have a pretty robust light vehicle pipeline?
Roger Penske: Well, look, I would say we have a pipeline. Our goal is to be up five from a brand standpoint, at least five on acquisition, I think we’re tracking in that area. We have some things in the pipeline, which I think what’s promising. But we’re going to be very, very selective, whether it’s internationally or domestically to be sure it fits in areas where we have scale also, we wanted to fit in with all the premium luxury and volume foreign brand mix. So that’s going to be important as we go forward. And I think at the end of the day, we followed that. That’s why you look at us even in the U.K., we’re 95% premium luxury. We made that acquisition of the North London Mercedes businesses is now under agency, and we had a 20.5% market share in the month of June.
So that’s starting to really pay off. So strategically and the brand will be critical when we look at this as we make acquisition, obviously, affordability from a standpoint of a return will also be key plus today, what’s the CapEx requirement.
David Whiston: And finally, do you – in your opinion, outside of Tesla, do you think there are too many EVs on the market right now?
