In what can be termed as positive news for the CV segment, growth is gradually filtering down from the M&HCV market to the light commercial vehicle (LCV) segment.
02 Jul 2015 | 7962 Views | By Kiran Bajad
In what can be termed as positive news for the commercial vehicle segment, growth is gradually filtering down from the M&HCV market (which has seen continuous growth for the past 10 months) to the light commercial vehicle (LCV) segment.
Heavy and medium commercial vehicle (M&HCV) sales are continuing ...
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In what can be termed as positive news for the commercial vehicle segment, growth is gradually filtering down from the M&HCV market (which has seen continuous growth for the past 10 months) to the light commercial vehicle (LCV) segment.
Heavy and medium commercial vehicle (M&HCV) sales are continuing their strong run with all the OEMs recording higher sales month on month. Last month, Roland Berger Strategy Consultants had highlighted that the M&HCV segment in India is seeing a clear trend of demand for heavy vehicles, especially 25T and 31T trucks. While 2014-15 saw the 25T segment record 15 percent YoY growth, customers are now preferring higher-tonnage vehicles like 31T vehicles, which saw 53 percent YoY growth in the last fiscal. The firm expects that the small commercial vehicles segment will follow the trend in the M&HCV segment and will turn positive in next 6-8 months.
Sales in the above 1-tonne payload LCV segment are gradually increasing performing and Ashok Leyland continues to record double-digit growth in sales of its Dost. However, sales of small CVs of less than 1-tonne payload remain stuck in the slow lane mainly due to a slowdown in rural India growth as a result of a below-than-normal monsoon. Both Tata Motors and Mahindra & Mahindra saw negative sales in the category albeit M&M is seeing better sales for its pick-ups.
The list of less than 1-tonne small CVs includes the Mahindra Maxximo, Piaggio Ape Truck, Ape Truck plus and mini, Tata Motors’ Ace, Ace Ex and Ace Zip, whose sales have continued to decline. However in the above-1-tonne segment, which has the Ashok Leyland Dost and Mahindra’ Genio and Bolero Maxi Truck, seems to be doing good. However sales of the Tata Super Ace, 207, Xenon and recently launched Ace Mint have yet to gather momentum. New entrant Isuzu Motors India’s D-Max pick-up is gradually getting noticed. The company plans to introduce its locally manufactured pick-up early next year.
Tata Motors’ total sales of 25,542 units in June were down 5% (June 2014: 26,832) but its M&HCVs posted double-digit growth of 19% with sales of 11,450 units (June 2014: 9,620) Its LCVs though remain in negative territory – at 14,092 units sold, they were down 18% year on year (June 2014: 17,212).
Ashok Leyland’s total sales were up 41% at 10,461 units sold (June 2014: 7,411) Its M&HCV sales of 8,048 units marked a 46% increase over year-earlier sales (June 2014: 5,501). Its LCVs saw positive sales momentum with 26% growth with sales of 2,413 units (June 2014: 1,910 units).
VE Commercial Vehicles, which had seen double-digit growth in May 2015, saw flat growth of 2% in June. In the domestic 5-tonne and above category, the company sold 3,537 units (June 2014: 3,474).
Mahindra HCV continued its strong growth of 45 percent, selling 404 units in the month albeit on the small base (June 2014: 279 units). While the below 3.5 T GVW segment saw decline of 6 percent, it sold 11,507 units (June 2014-12,283 units). However, the above 3.5T GVW segment has recorded 16 percent growth selling 826 units (June 2014-711 units)