The last month of the calendar year 2015 witnessed mix sales for the commercial vehicle segment with the medium and heavy commercial vehicles (M&HCV) witnessing a slowdown in growth. The good news though is that LCVs, which saw a decline in December for the last two years, has turned positive in December 2015.
Tata Motors and Ashok Leyland registered double digit growth in the LCV segment, while Mahindra & Mahindra’s below 3.5T GVW segment recorded flat growth, and above 3.5T GVW segment declined 25 percent.
Credit rating agency ICRA predicts that, the LCV passenger vehicle segment is likely to remain under stress, but the LCV goods carrier segment might see some modest revival on the back of economic recovery, improving viability due to decline diesel prices and replacement demand.
There is still surplus fleet in the market and tight financing norms on the back of rising delinquency levels have put pressure on the growth of LCV segment. Industry analysts are keenly watching if the LCV segment manages to sustain the growth curve after persistence fall since 2013.
As regards specific manufacturer sales, Tata Motors’ total sales of 27, 347 units in December were up 6 percent (December 2014: 25,736 units). M&HCVs saw a marginal growth of 2 percent, selling 12,673 units (December 2014: 12,438). Meanwhile, the LCV segment has registered an upward trend growing by 11%, with sales of 14,674 units (December 2014: 13,298).
Ashok Leyland’s total sales were up 31 percent at 12,209 units sold (December 2014: 9,290). While M&HCV sales notched up an impressive 35 percent growth selling 9,758 units (December 2014: 7,210); LCVs also gained double digit growth of 18 percent with sales of 2,451 units (December 2014: 2,080 units).
Mahindra’s M&HCV sales went up 74 percent, with sales of 528 units last month (December 2014: 303 units). While the below 3.5 T GVW segment registered flat growth with sales of 11,530 units (December 2014: 11,525 units), the above 3.5T GVW segment went down by 25 percent with sales of 407 units (December 2014:540 units).
VE Commercial Vehicles recorded a strong 36 percent growth selling 4,114 units in the domestic market last month (December 2014: 3,013 units).