Chennai-based Ashok Leyland's total domestic wholesales for its commercial vehicles in September 2024 stood at 16041 units, a 12% decline in comparison to 18,193 units during the corresponding month of the previous year.
The M&HCV segment witnessed a drop of 15%, to 10,210 units during September 2024, as against 11,960 units in September 2023. Furthermore, within the M&HCV segment, the truck segment saw a 17% decline to 8414 units during September 2024, as compared to 10,109 units recorded in September 2023. Likewise, the bus segment saw a 3% jump to 1796 units in September 2024, compared to1851 units in September last year.
Secondly, in the LCV category saw a 6% decline at 5,831 units in September 2024 as against 6233 units during the comparable period.
The development, industry experts claim, should be seen as a temporary dip in sales, as they anticipate a healthy momentum in the MHCV industry in the second half of FY25.
As per a report released by ShareKhan, a research consultancy firm, in September, the outlook for the MHCV sector is improving, as election-related uncertainties have subsided, and government infrastructure spending is expected to gradually pick up. Secondly, freight rates have improved over the past two months, driven by a rise in logistics activity following the formation of a new government and the upcoming festive season.
Although replacement demand for MHCVs has been delayed, leading to an ageing truck population, the research report claims that a more efficient logistics system and the introduction of technologically advanced products will gradually stimulate replacement demand. Additionally, a continuous inflow of orders in the bus segment bodes well for Ashok Leyland, given its strong market position, the report noted.