Indian CV makers upbeat as M&HCVs show growth in June

The good news from rising passenger car sales in June 2014 seems to be spreading to the commercial vehicle sector. Amid the positive sentiment returning to the Indian economy, thanks to the new stable government and anticipation of bigger infrastructure spend and larger reforms through the upcoming Union Budget, most CV players have reported improves sales for last month. This underlines the fact that recovery, albeit slow right now, is on its way and manufacturers are anticipating a turnaround in the near term for the beleaguered CV sector.

In June 2014, rentals of the heavy duty prime mover segment (35, 40 and 49-tonners) recovered notably by 20 percent. This is the segment that was first impacted by the slowdown three years ago and now there is renewed confidence among fleet operators towards buying new vehicles. Truck rentals on trunk routes during May 2014 were up by 4-5 percent.

In terms of specific sales numbers, leader Tata Motors’ sales slid 27 percent with the company selling 26,832 units (June 2013: 36,912 units). The LCV segment, once the big-seller for Tata,  continues to see lower volumes and dropped by 33 percent –17,212 units against 25,778 units in June 2013. M&HCV sales declined by 14 percent to 9,620 units compared to 11,130 a year ago. 

Ashok Leyland posted positive sales numbers in the month with its M&HCVs selling 5,542 units, up 17 percent (June 2013: 4,717). However, its once-popular Dost LCV saw a 15 percent fall with sales of 1,910 units (June 2013: 2,253.

VE Commercial Vehicles posted a 12.4 percent growth in the domestic market in the 5-tonne and above category, selling 3,474 units (June 2013: 3,090).

Mahindra Trucks and Buses sold 995 units, up 9 percent (June 2013: 911). While Mahindra & Mahindra’s three-wheelers division sold 4,544 units, up 5 percent (June 2013: 4,303), the four-wheelers passenger and cargo carriers saw sales of 14,138 units, a growth of 3 percent (June 2013: 13,761).