Commercial vehicles sales up 8.56% in November

The mood in the CV industry remains buoyant, particularly medium and heavy commercial vehicles (M&HCVs). The CV segment in India registered overall sales of 51,766 units to clock 8.56 percent growth over November 2014 sales of 47,686 units. M&HCVs continued to be in growth mode with sales of 20,145 units for a 24.75 percent increase. Importantly, LCVs were in positive territory with 8.56 percent growth and sale of 31,621 units.

In its latest report, rating agency ICRA predicts that the M&HCV (Trucks) industry to grow by 19-21 percent in FY2016 due to the improving viability for fleet operators, replacement-led demand (following two years of capacity deferral by fleet operators). Gradual improvements in these factors, including pre-buying ahead of implementation of BS IV emission norms and Anti-Lock Braking Systems (ABS) have reflected in the 35.1% growth in M&HCV (Truck) segment in H1FY2016.

However, structural challenges still persist in the LCV (Truck) segment. Unlike M&HCVs, ICRA expects the LCV (Truck) segment will continue to face challenges (expected to decline by 8-10%) in FY2016 as the segment’s prospects continue to be influenced by overcapacity issues and constrained financing environment amidst rising delinquencies. Nevertheless, the segment’s growth prospects over the medium-term remain intact.

IFTRT reports that with the recent Rs 0.87/litre hike in diesel price and lower availability of trucks due to short availability of drivers on account of festivals, truck rentals in November remained firm during the ongoing festival season and higher consumer spending.

As regards specific manufacturer sales, Tata Motors’ total sales of 24,828 units last month were down 2 percent (November 2014: 25,406 units). M&HCVs saw double-digit growth of 21 percent with sales of 11,524 units (November 2014: 9,452).  LCV sales were down 16 percent YoY at 13,304 units (November 2014: 15,954 units).

Ashok Leyland’s total sales were up 16 percent at 8,971 units sold (November 2014: 7,732). While M&HCV numbers rose 21 percent to 6,297 units (November 2014: 5,204), LCV numbers were up only 6 percent with sales of 2,674 units (November 2014: 2,528 units).

Mahindra M&HCV’s sales maintained a healthy growth of 75 percent selling 454 units. (November 2014: 259 units). Its LCVs did well and the less than 3.5-tonne GVW segment increased by 16 percent, with sales of 14,014 units (November 2014: 12,040 units). Likewise, the above 3.5T GVW segment was up marginally by 3 percent, selling 333 units (November 2014:323 units).   

VE Commercial Vehicles sold 2,905 units in the domestic market, registering a growth of 30 percent (November 2014: 2,233). 

Also read: India Sales Analysis November 2015