It finally looks like the green shoots of recovery in the critical medium and heavy commercial vehicle (M&HCV) segment in India are real.
All the big players have posted increased M&HCV sales in May 2015. After two years of a slowdown, M&HCV numbers turned positive in August 2014 and since then over the past 10 months have registered double-digit growth, month on month. This is a huge respite for the CV manufacturers and with increased economic and infrastructural activities across the country, the prognosis for future sales is good. Coming on the back of April 2015's 25% growth (19,277 units) for the M&HCV market, the May numbers are heartening.
Tata Motors, the biggest CV player, saw overall sales decline 6 percent in May with 23,680 units (May 2014: 25,104). However, its M&HCV sales saw were up 18 percent with 10,788 units sold (May 2014: 9,113 units.) Its LCV numbers are yet to turn positive and continue to remain in negative territory – down 19 percent at 12,892 units (May 2014: 15,991).
Ashok Leyland continues to sustain its good run and saw its sales increase 40 percent at 9,294 units last month (May 2014-6,632 units). Its M&HCVs sold 6,892 units, up 41 percent (May 2014: 4,884 units). Its LCVs also recorded strong growth of 37 percent with sales of 2,402 units (May 2014: 1,748 units).
VE Commercial Vehicles’ sales were up 18 percent in the month. In the domestic market in the 5-tonne and above category, the company sold 3,617 units (May 2014: 3,064 units).
Mahindra HCV sales grew 44 percent at 343 units (May 2014: 238 units).