The sales of commercial vehicles in India began on a promising note last April, but the segment has now ended FY2024 flat.
The overall wholesales for March 2024, came at 93,484 units, which was 8 percent lower than 101,737 commercial vehicles sold for the same period last year.
Interestingly, all OEMs saw a decline in their sales trajectory YoY anticipating a muted few months as the country gears up for the General Elections 2024.
| COMMERCIAL VEHICLE SALES IN INDIA | ||||
| Company and Segment | Mar ’24 | Mar ’23 | Change (in units) | Change (in %) |
| YoY | YoY | |||
| Tata Motors | ||||
| HCV Trucks | 12,710 | 14,206 | -1,496 | -11% |
| ILMCV Trucks | 6,781 | 8,327 | -1,546 | -19% |
| Passenger Carriers | 5,854 | 3,973 | 1,881 | 47% |
| SCV Cargo and Pickup | 15,367 | 18,801 | -3,434 | -18% |
| Total | 40,712 | 45,307 | -4,595 | -10% |
| Mahindra & Mahindra | ||||
| LCV < 2T | 4,012 | 3,385 | 627 | 19% |
| LCV 2 T – 3.5 T | 13,601 | 17,428 | -3,827 | -22% |
| LCV > 3.5T + M&HCV | 3,317 | 1469 | 1,848 | 126% |
| Total | 20,930 | 22,282 | -1,352 | -6% |
| Ashok Leyland | ||||
| M&HCV Trucks | 11,773 | 14,399 | -2,626 | -18% |
| M&HCV Bus | 2,744 | 1537 | 1,207 | 79% |
| LCV | 6,800 | 6,949 | -149 | -2% |
| Total | 21,317 | 22,885 | -1,568 | -7% |
| Volvo Eicher CV | ||||
| 10,525 | 11,263 | -738 | -7% | |
| Total | 93,484 | 101,737 | -8,253 | -8% |
The country’s largest CV player Tata Motors saw fifth consecutive month of decline in March. The wholesales for FY2024 came at 378,060 units, which was 4 percent lower compared to the same period last year. The company attributed the moderation in H2 due to a number of factors.
Girish Wagh, Executive Director, Tata Motors said, “The trend of YoY sales growth in volumes across most segments of H1FY24 moderated in H2 due to the combined effects of a high base, elections held across 5 states in Q3FY24 and upcoming General Elections in Q1FY25. In Q4FY24, domestic sales at 1,04,922 units were marginally lower than Q4FY23 sales of 1,12,145 units, which had benefitted from increased pre-buy due to BS6 Phase II transition. The M&HCV segment contracted marginally by around 6% compared to Q4FY2023, with demand continuing from the government’s infrastructure initiatives, expansion in core industries, and sustained growth in e-commerce.”
He further stated that the passenger commercial vehicles segment continued to register robust post pandemic recovery with sales rising around 38 percent versus Q4 FY2023.
Tata Motors’ stated that sales volume of small and light commercial vehicles reduced by 10% in the last quarter of FY2024, largely due to financing constraints experienced by the ‘First Time User’ category.
Thanks to impressive demand for its PikUp range Mahindra & Mahindra clocked smart growth of 6 percent in FY2024. The company reported wholesales of 262,810 units, compared to 248,576 units for the same period last year. Interestingly, Mahindra was the only CV maker to surpass the record sales clocked by the industry in FY2019.
Veejay Nakra, President, Automotive Division, Mahindra & Mahindra said, “We ended the financial year F24 on a positive note with Mahindra PikUps crossing 2 lakh units during the year, which is the highest ever for any commercial vehicle in the load segment in India.”
Ashok Leyland despite a flat growth managed to end-FY2024 in the green. The company reported wholesales of 176,032 units, compared to 173,967 units for the same period last year.
The company benefitted from STU and private operator demand for buses, as well as acceptance for its AVTR modular truck range.
Volvo Eicher Commercial Vehicles (VECV), reported wholesales of 79,722 units in FY2024, which was 9 percent higher YoY. The company was able to grow its volumes almost throughout the year. The company also managed to grow its sales by 29 percent versus FY2019.
| Company | FY’24 | FY’23 | Change (in units) | Change (in %) | FY’19 | Change (vs FY’19) |
| Tata Motors | 378,060 | 393,317 | -15,257 | -4% | 468,692 | -19% |
| Mahindra & Mahindra | 262,810 | 248,576 | 14,234 | 6% | 248,601 | 6% |
| Ashok Leyland | 176,032 | 173,967 | 2,065 | 1% | 248,505 | -29% |
| Volvo Eicher CV | 79,367 | 72,827 | 6,540 | 9% | 61,733 | 29% |
| Total | 896,269 | 888,687 | 7,582 | 0.85% | 1,027,531 | -13% |
Road ahead
The commercial vehicle industry is expected to see a slowdown in the coming months on the back of general elections, and slowdown in demand.
However the industry is optimistic, that in the second half of CY2024 the demand for CV will bounce back.
“Going forward, with promising GDP growth outlook, incentives from government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra related developmental projects, demand for commercial vehicles is expected to improve from the in latter half of Q2FY25. We remain cautiously optimistic about domestic demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation,” added Wagh.
