CV majors post improved M&HCV sales in May, growth filters down to LCVs

The commercial vehicle sector is slowly but surely reaping the gains of the improving Indian economy and is recording month on month growth.

Both the medium and heavy commercial vehicle (M&HCV) and light commercial vehicle segments have recorded positive sales albeit the growth rate of M&HCVs has slowed down.  

Thanks to replacement demand, pre-buying and improving viability of fleet operators, the CV sector will continue to see double-digit growth in FY16-17.

Following the strong recovery in the M&HCV segment last year, growth has now started filtering down to the LCV market, which is likely to post 10-12% growth this fiscal. Driving this growth will be higher demand for LCV trucks. Similarly, with overall recovery and new orders placed by SRTUs (under the JNNURM programme), the bus segment is expected to register growth of 10-12% during FY 2017.    

While announcing Ashok Leyland annual results last week, managing director Vinod K Dasari, had said, “The overall commercial vehicle industry is likely to grow by 10-15 percent in FY16-17. The light commercial vehicle segment will recover during the fiscal year and record double-digit growth. There is still replacement and GDP demand driving M&HCV sales but improved infrastructure activities and mining are also helping.”

How the OEMs have fared in May 2016

Ashok Leyland’s overall sales were up 6% YoY with total sales of 9,875 units in May 2016 (May 2015: 9,290 units). After recording consistent double-digit growth, its M&HCV numbers have slowed down and posted 8% growth at 7,469 units (May 2015: 6,888 units). LCV sales were flat at 2,406 units. (May 2015: 2,402 units).

Mahindra & Mahindra’s M&HCVs registered strong growth up by 46%, selling 501 units last month (May 2015: 343 units). While the below-3.5T GVW products recorded 15% growth with sales of 11,852 units (May 2015: 10,349 units), those in the above-3.5T GVW segment saw 6% year-on-year growth with sales of 756 units (May 2015: 715 units).

VE Commercial Vehicles maintained its strong performance by growing 30.1% with sales of 4,704 units in the domestic market (May 2015: 3,617 units).