Indian commercial vehicle exports surge to a three-year high in FY2016

Commercial vehicle exports during 2015-16 surged to a three-year high as OEMs targeted newer markets, both to drive export numbers as well as a buffer against competitive domestic sales.

Fiscal year 2015-16 saw total CV exports cross the 100,000 mark with total shipments of 101,689 units, an increase of near-17% year on year (2014-15: 86,939). They also helped the Indian automobile industry notch its highest-ever overall exports of 3,641,546 for a fiscal. Both M&HCVs and LCVs partnered this growth with sales of 35,192 units (+14.81%) and 66,497 units (+18.14%) respectively.

This achievement comes on the back of a decline in 2013-14, when overseas vehicle  shipments were down by 3.71% to 77,056 units, and in 2014-15, when exports grew 11.33% to 85,782 units.

OEMs train sights on export markets

Over the past year-and-a-half, most of the CV players in India pushed the new product and variants strategy to drive sales in the domestic market. But major OEMs like Tata Motors, Ashok Leyland and Mahindra & Mahindra aggressively targeted foreign market sales.

Tata Motors, which is India’s largest exporter of CVs, aims to significantly grow its export business with its Prima range of premium trucks and buses and also expand its footprint in foreign markets. In 2015-16, the company shipped a total of 53,704 units, growing by 16.34% YoY. This number comprised 19,532 M&HCVs and 34,172 LCVs.

Ashok Leyland, which has bagged a number of large orders for its buses and trucks in the recent past, exported 13,037 units – 10,946 M&HCVs and 2,091 LCVs – during 2015-16, growing marginally by 3.91%.

Mahindra & Mahindra exported 27,731 units, recording a YoY increase of 26.78%. The products mainly comprised its pick-ups including the Bolero Maxi truck, Bolero single cab, Bolero Camper, and the Maxximo, Jeeto and LoadKing small trucks.

VE Commercial Vehicles’ total exports for 2015-16 were 6,512 units, up 14.21%, and comprised M&HCV passenger and goods carriers. SML Isuzu, a smaller player when it comes to tapping export opportunities, shipped 503 units, growing by 39.72%.