The commercial vehicle segment is seeing some signs of a slowdown given the fact that it has clocked steadfast growth over the fiscal. For November, the overall wholesales came at 66,507 units, which was just 2 percent higher YoY, but 18 percent lower than the previous month.
Tata Motors with sales of 26,579 commercial vehicles was in the red with a drop of 3 percent YoY. The slowdown in the sales of SCV, pulled the overall numbers in the negative, while the HCV trucks and passenger carriers segment saw flat growth.
Ashok Leyland too saw its sales drop by 5 percent YoY at 22,211 units last month. This can be attributed to the fact its M&HCV Trucks wholesales were lower by 13 percent YoY.
For Mumbai-headquartered Mahindra & Mahindra the sales of 22,211 units translated to a YoY growth of 13 percent. The positive momentum was seen across its product segments.
Volvo Eicher Commercial Vehicles, which recently launched the new Non-Stop series of HD Truck reported wholesales of 4,686 units, a growth of 5 percent YoY.
Amit Mohan, President and Head – Logistics, Infra, Commercial Vehicles & Construction Equipment Retail Loans, and Working Capital at Kotak Mahindra Bank said, “The CV Industry has grown 2.5% over previous year. FY 2023 saw a significant growth of 34% in unit terms and around 48% in terms of tonnage carrying capacity. It was expected that the industry will moderate in FY2024. Further, such correction is good for the delicate supply-demand equilibrium in the CV industry. It is pertinent to note that the entire growth has come from the passenger segment. The goods segment has been flat YoY.”
Going forward, the next few months are expected to see positive growth, but in percentage terms the demand could look flattish due to a high-base effect. The government’s continued focus on infrastructure creation would lead to sustained demand.
| COMMERCIAL VEHICLE SALES IN INDIA | ||||||
| Company and Segment | Nov ’23 | Nov ’22 | Change (in units) | Change (in %) | Oct ’23 | Change (in %) |
| YoY | YoY | YoY | ||||
| Tata Motors | ||||||
| HCV Trucks | 8,253 | 8,194 | 59 | 1% | 10,204 | -19% |
| ILMCV Trucks | 4,385 | 4,147 | 238 | 6% | 5,351 | -18% |
| Passenger Carriers | 2,130 | 2,041 | 89 | 4% | 2,514 | -15% |
| SCV Cargo and Pickup | 11,811 | 13,048 | -1,237 | -9% | 14,419 | -18% |
| Total | 26,579 | 27,430 | -851 | -3% | 32,488 | -18% |
| Mahindra & Mahindra | ||||||
| LCV < 2T | 4,083 | 2,643 | 1,440 | 54% | 4,335 | -6% |
| LCV 2 T – 3.5 T | 17,284 | 16,193 | 1,091 | 7% | 20,349 | -15% |
| LCV > 3.5T + M&HCV | 844 | 755 | 89 | 12% | 1,031 | -18% |
| Total | 22,211 | 19,591 | 2,620 | 13% | 25,715 | -14% |
| Ashok Leyland | ||||||
| M&HCV Trucks | 6,755 | 7,727 | -972 | -13% | 8,272 | -18% |
| M&HCV Bus | 982 | 958 | 24 | 3% | 1,139 | -14% |
| LCV | 5,294 | 4,969 | 325 | 7% | 6,348 | -17% |
| Total | 13,031 | 13,654 | -623 | -5% | 15,759 | -17% |
| Volvo Eicher CV | ||||||
| 4,686 | 4,483 | 203 | 5% | 7,077 | -34% | |
| Total | 66,507 | 65,158 | 1,349 | 2% | 81,039 | -18% |
