Mahindra continues to dominate CV pick-up market in India

Mahindra & Mahindra (M&M), which launched its latest pick-up – the Imperio – yesterday is looking to further strengthen its position in the pick-up segment in the domestic market. The Imperio, which replaces the Genio in India, is a premium pick-up targeted at small and medium businesses.  

For the April-November 2015 period, M&M remains the leader by far, stamping its authority with an overwhelming 70 percent market share in the 2-3.5 tonne GVW pick-up category with its popular products being the Bolero Maxi Truck and Bolero Camper.  

M&M sold a total of 82,005 units during the first eight months of the current fiscal year as against 86,534 units sold in April-November 2014, a YoY fall of 5.23 percent. This fall can be attributed to a surplus fleet in the market and tight financing norms on the back of rising delinquency levels, which in turn has put pressure on the growth of LCV market. During April-November 2015, the company sold a total of 108,631 commercial vehicles, growing by 6 percent (April-November 2014: 102,459).

Interestingly, Ashok Leyland which has a single product in this category – the Dost small CV designed for a payload of 1.25 tonnes – has secured second position in the category, with a market share of 14.7 percent. The company sold 17,050 units against 15,235 units in April-November 2014, a YoY growth of 11.91 percent.

Tata Motors, which is now on the third spot in the category with a market share of 13.7 percent, has consistently ceded market share to rivals. The company, which has a range of products in this category like the Super Ace, Tata 207, Xenon and Winger, registered total sales of 15,738 units in April-November 2015 against 14,325 units sold in April-November 2014, a dip of 9.8 percent YoY.

In a bid to increase its market share, Tata Motors launched the Ace Mega pick-up last year. Powered by a 40bhp, 800cc engine, the Ace Mega is priced at Rs 4.3 lakh. The move seems to have clicked; after its launch in June and till November, the aggressively priced Ace Mega has sold 5,970 units, even going past established products like the Super Ace which sold 5,796 units during April-November 2015.

Isuzu Motors, a new entrant in the segment, has sold 885 units of the D-Max between April-November 2015, up 85 percent over the 476 units sold in April-November 2014. The company is currently expanding its dealership network across the country and is et to open its greenfield plant later this year.  and looking aggressively towards Indian pick-ups market, further intensifying the competition.  

During April-November 2015, the overall pick-up segment declined marginally selling 115,978 units (April-November 2014: 117,170).

Tata tops in 2T mini truck segment
In the 2-tonne mini-truck segment, which is seeing a lack of financing and overcapacity in the market, Tata Motors remains the market leader with its popular products like the Ace and Ace Zip and has a market share of 70 percent. The company sold 51,651 units during April-November 2015 against 75,791 units in April-November 2014, a YoY fall of 34 percent. The fall is due to the overall decline in the LCV truck segment in the country.

M&M, with its new product Jeeto, has able to gain and increase market share in the segment. The company sold 19,173 units during April-November 2015, up 83 percent YoY, and currently has a 26 percent market share in the 2T segment.

Also read: India Sales Analysis -- December 2015