Pick up in economic activity bolsters CV sales in June

Commercial vehicles see increase in both enquiries and overall retail sales in June.

By Nilesh Wadhwa calendar 01 Jul 2021 Views icon10482 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Pick up in economic activity bolsters CV sales in June

After the absolute bloodbath in May, commercial vehicle sales in June have shown signs of improvement. With economic activity slowly picking up following the easing of lockdowns and the second wave of Covid-19 showing  signs of flattening, CV sales are also signalling an upward trend. The number of enquiries as well as overall retail numbers are seeing improvement.

Overall, June sales are up 85 percent year-on-year at 39,809 units compared to 21,533 units in June 2020. CV sales in May 2021 were at a paltry 656 units as a result of lockdown in many regions across the country. On a quarterly basis, Q1 of FY2022 started on a positive note with sales of 97,555 CVs compared to 29,682 units for the same quarter last year.

The country’s largest CV maker, Tata Motors sold 19,594 units in June 2021 (+146% YoY) compared to 7,968 in June 2020. For the quarter, Tata Motors clocked 300 percent-plus gains at 43,400 units in Q1 FY2022, albeit on a low year-ago base.

Mahindra & Mahindra reported sales of 12,604 units in June (+21% YoY), and 34,034 units in Q1 FY2022 (+118% YoY). According to the company, the gradual opening up of the market in a phased manner has helped boost demand in both urban and rural markets. The company expects an upward trend in demand to continue across all segments and markets.

Chennai-headquartered Ashok Leyland reported sales of 5,851 units in June, and 16,550 units in Q1 FY2022. However, month-on-month sales dropped for the CV major’s bus division.

VE Commercial Vehicles was also in the positive with sales of 1,760 units in June, and 3,971 units for Q1 FY 2022. 

Growth outlook
While companies are cautiously monitoring the situation and aligning business plans as per the evolving scenario, the stabilisation of the supply chains support the sentiment for CV makers. However, the semiconductor supply issue remains a challenge and the Delta strain of Covid-19 is being seen as a concern going forward.

RELATED ARTICLES
Electric 3Ws maintain double-digit growth in November, 11-month sales at record 631,000 units

auther Autocar Pro News Desk calendar02 Dec 2024

Of the total 1.12 million three-wheelers sold in India between January-November, retail sales of 631,853 e3Ws account fo...

Electric car and SUV sales up 14% in November to 8,600 units, Tata share falls to 50%, JSW MG rises to 36%

auther Autocar Pro News Desk calendar01 Dec 2024

After notching best-ever monthly retails in festival-laden October, demand for electric PVs slowed down albeit November ...

Ola sells 29,000 EVs in November, stiff TVS-Bajaj battle continues, Revolt sells 2,000 bikes

auther Autocar Pro News Desk calendar01 Dec 2024

Indian electric two-wheeler OEMs register retail sales of nearly 119,000 units and 29% YoY growth in November which take...