M&HCV sales maintain healthy growth in September

Medium and heavy commercial vehicle (M&HCV) sales maintained their growth in September 2015 as all key manufacturers registered increased sales numbers, showing consistent growth for over a year now. This growth though has not yet percolated down to the LCV segment, as it remains negative due to various factors including unavailability of finance and the rural market slowdown.  

However, experts believe that this growth in the M&HCV segment is largely driven by the replacement demand by fleet operators and preference for heavy vehicles.

Speaking to Autocar Professional on the consistent growth in the M&HCV segment, R Ramakrishnan, senior vice-president, Product Strategy& Planning and Customer Value Creating, Commercial Vehicle Business Unit, Tata Motors, said,  “The overall M&HCV segment is positive largely due to the replacement demand. Industrial output is still quite low; in mining only coal is able to take care of import substitution and coal mining are helping whereas iron ore is nowhere near where it was some years ago. Infrastructure is beginning to fall in place but still early days. So the heavy truck demand is largely replacement demand.”

Coming to specific manufacturer numbers, Tata Motors’ total sales of 29,039 units in the month point to flat growth (September 2014: 28,943). While M&HCV sales were a strong 52.9 % growth at 15,915 units (September 2014: 10,404), LCV sales were down 29% YoY at 13,124 units (September 2014: 18,539).

Ashok Leyland’s total sales were up a massive 61% at 14,771 units (September 2014: 9,185). Its M&HCVs notched up healthy 83% growth, selling 12,134 units. (September 2015: 6,625). LCV numbers were up 3% with sales of 2,637 units (September 2014: 2,560 units).

Mahindra M&HCV sales rose 184%, albeit on a low base, selling 511 units (September 2014: 180 units). While the below-3.5 T GVW segment declined 9%, it sold 13,460 units (September 2014-14,731 units). However, the above 3.5T GVW segment registered strong 77 % growth selling 459 units (September 2014-260 units). 

VE Commercial Vehicles maintained its double-digit growth in the month. the company sold 3,452 units registered a growth of 24.1% (September 2014: 2,781).