Alternate fuel, connected tech add impetus to CV sales in FY2023

The winds of change are well manifested across the CV space. Alternate fuels have been making smart inroads and at the same time, the introduction of electric variants like the Tata ACE or the unveiling of the Ashok Leyland Bada Dost Xpress CNG 12 seater at the Auto Expo 2023 indicates that the electrification is also progressing on an even keel across the Indian CV industry

Additionally, in a bid to attract more customers, OEMs are pushing connected technologies in their vehicle offering to provide higher uptime, which leads to growth in business for the customers and all of this has added to brisk sales in FY2023.

A total of 101,737 CVs were sold across segments, marking a 12 percent YoY growth, and 27 percent growth over the previous month. In fact, looking at the fiscal year 2023, the overall commercial vehicle sales came at 902,432 units, a 34 percent jump compared to the same period last year.

Tata Motors, closed the year on a 22 percent growth with sales of 393,317 CVs sold. The growth was witnessed across its M&HCV, I&LCV, Passenger carriers, SCV Cargo and Pickup segments. For March the sales were flat at 45,307 units.

According to Girish Wagh, Executive Director, Tata Motors, “Higher replacement demand, advance buying in anticipation of price hikes, and year-end buying to claim depreciation benefits, further buoyed the demand towards the end of the quarter. As a result, M&HCVs grew by over 33 percent versus Q3 FY2023, while being 18 percent ahead of Q4 FY2022. However, the demand for small and light commercial vehicles continued to be impacted due to high-interest rates and high base effect.”

Wagh remains optimistic on the overall CV demand in FY2024 on the back of the government’s “continuing thrust on infrastructure development but will maintain a close watch on geopolitical developments, interest rates, fuel prices, and inflation.”

For Mahindra, the demand for its Pick-up range helped it report a yearly wholesale of 248,576 units, which was a 40 percent jump YoY. The LCV 2-tonne to 3.5-tonne was the strongest segment for the company throughout the year and saw its best-ever performance.

The company posted a 12 percent growth with sales of 22,282 units in March.

Ashok Leyland, continued to witness robust growth, in fact, in terms of YoY performance, the company sold 180,916 units marking a 54 percent growth. The company benefited from the strong demand led by the infrastructure push, helping drive sales of M&HCV trucks.

Volvo Eicher CV, too saw strong demand and closed the financial year with sales touching almost 80,000 units. It reported wholesales of 79,623 units, which marked a 40 percent growth YoY. In March the company reported sales of 11,263 units, a 42 percent growth over the same period last year.

Going forward, with the pre-buying taking place in March, there could be a temporary slowdown in overall sales. But, with the government’s continued focus on infrastructure projects, as well as, improvement in finance, fleet buyers who make up for the bulk of truck sales, as well as replacement demand for buses kicking in, the industry is well-poised for sustained growth.