M&HCV sales remain strong in August

The medium and heavy commercial vehicles (M&HCV) segment witnessed a strong double digit growth in August. All the manufacturers have registered healthy growth in sales. LCVs too are showing recovery signs after more than a year’s slump as the rate of decline has come down.

The growth drive of M&HCVs is set to continue. In a recent report by rating agency ICRA, M&HCV segment is expected to register 12-14 percent growth during FY16.  This growth is largely driven by continuing trends towards replacement of ageing fleet, improvement in economics of fleet operators and some pre-buying ahead of the mandatory introduction of Anti-Lock Braking Systems from October 2015.

However, the agency pointed out that unlike the LCV segment expected to remain down during the FY16, due to projection of continue to be influenced by overcapacity issues and constrained financing environment amidst rising delinquencies. Nevertheless, driven by certain structurally favorable factor, the segment’s growth prospects over the medium-term remain intact.

Tata Motors’ total sales of 24, 284 units in August were down 4% (August  2014: 25,428) but its M&HCVs posted healthy double-digit growth of 31% with sales of 12,017 units (August 2014: 9,141). Its LCV sales were down 25% YoY at 12,267 units (August 2014: 16,287).

Ashok Leyland’s total sales were up 39% at 11,544 units sold (August 2014: 8,333). Its M&HCV sales of 8,903 units were a strong 53% increase over year-earlier sales (August 2015: 5,832). Its LCV numbers was up marginally at 6% growth with sales of 2,641 units (August 2014: 2,501 units).

Mahindra M&HCVs increased 21%. It sold 341 units in the month. (August 2014: 282 units). While the below 3.5 T GVW segment registered growth of 4%, it sold 12,254 units (August 2014-11,794 units). However, the above 3.5T GVW segment has recorded strong 34 % growth selling 428 units (August 2014-320 units). 

VE Commercial Vehicles after last month single digit growth in increased 17 %, it sold 3009 units (August 2014: 2,571 units).