Is the commercial vehicle segment seeing a slowdown in sales or is this a high-base effect? The answer is way more complicated. The CV industry, on the one hand, is seeing steady demand on the back of infrastructure push and people movement. But on the other hand, the numbers have seen a drop thanks to pre-buying in March, ahead of the transition to BS 6 Phase 2.
As such the sales in June were at 74,747 units overall, compared to 73,893 units a year ago. On the other hand, Q1 FY2024 saw a marginal decline of 3 percent with 200,829 units sold overall, compared to 207,192 units sold a year ago.
The country’s largest truck maker, Tata Motors sold 33,148 commercial vehicles in June, which was lower by 4 percent YoY. The ILMCV Trucks, SCV Cargo, and Pickup, segments were in red, thus bringing the overall numbers in the negative. For the quarter the company sold 82,225 units, which was 14 percent lower compared to the same period last year.
Girish Wagh, Executive Director, Tata Motors said, “Tata Motors Commercial Vehicles domestic sales at 82,225 in Q1 FY24 were 14.1% lower than Q1 FY23 sales while for the month of June, they were 20.2% higher than the vehicle sales registered in May. We successfully upgraded the entire vehicle portfolio during BS6 Phase 2 transition, beyond the mandatory requirements, to offer more features, value-adds, and benefits to customers. M&HCV growth was driven by the strong infrastructure push by the government, as well as increased activity in e-commerce, construction, and replacement demand in auto logistics and petroleum sector.”
Outlook remains positive
“During the quarter, we started deliveries of electric buses, in accordance with the CESL tender mandate and expect to ramp up supplies in the coming months. Looking ahead, the promising monsoon and continuing infrastructure thrust by the government auger well for the CV industry, even as it faces the headwinds of high-interest rates, fuel prices and inflation,” added Wagh.
Ashok Leyland managed to grow its June wholesales by 7 percent at 14,363 units. For Q1 FY2024, the sales came at 39,107 units, which is 5 percent higher compared to the same period last year.
Mahindra & Mahindra reported wholesales of 20,959 units, which was 3 percent higher YoY. For Q1 FY2024, the company sold 61,252 units, which was 4 percent higher on a YoY basis. Barring its LCV under 2-tonne, all segments were in the green.
Volvo Eicher CV managed to register double-digit growth both for June and as well as Q1 FY2024. The company sold 6,277 units last month, which was 12 percent higher YoY, and 18,245 units in the first three months of FY2024, clocking a growth of 19 percent YoY.
In terms of outlook, infrastructure growth, economic growth, and replacement demand is expected to keep the order books healthy.
| COMMERCIAL VEHICLE SALES IN INDIA | ||||||||
| Company and Segment | Jun ’23 | Jun ’22 | Change (in units) | Change (in %) | Q1 FY’24 | Q1 FY’23 | Change (in units) | Change (in %) |
| YoY | YoY | YoY | YoY | |||||
| Tata Motors | ||||||||
| HCV Trucks | 9,625 | 8,058 | 1,567 | 19% | 24,769 | 22,826 | 1,943 | 9% |
| ILMCV Trucks | 4,723 | 5,851 | -1,128 | -19% | 10,321 | 16,998 | -6,677 | -39% |
| Passenger carriers | 4,810 | 3,868 | 942 | 24% | 10,745 | 9,637 | 1,108 | 11% |
| SCV Cargo and Pickup | 13,990 | 16,632 | -2,642 | -16% | 36,390 | 46,242 | -9,852 | -21% |
| Total | 33,148 | 34,409 | -1,261 | -4% | 82,225 | 95,703 | -13,478 | -14% |
| Mahindra & Mahindra | ||||||||
| LCV < 2T | 3,063 | 3,410 | -347 | -10% | 9,392 | 9,567 | -175 | -2% |
| LCV 2 T – 3.5 T | 16,735 | 16,405 | 330 | 2% | 48,540 | 47,462 | 1,078 | 2% |
| LCV > 3.5T + M&HCV | 1,161 | 616 | 545 | 88% | 3,320 | 1,953 | 1,367 | 70% |
| Total | 20,959 | 20,431 | 528 | 3% | 61,252 | 58,982 | 2,270 | 4% |
| Ashok Leyland | ||||||||
| M&HCV Trucks | 7,980 | 7,703 | 277 | 4% | 21,209 | 21,147 | 62 | 0% |
| M&HCV Bus | 1,294 | 696 | 598 | 86% | 3,077 | 1593 | 1,484 | 93% |
| LCV | 5,089 | 5,070 | 19 | 0% | 14,821 | 14,384 | 437 | 3% |
| Total | 14,363 | 13,469 | 894 | 7% | 39,107 | 37,124 | 1,983 | 5% |
| Volvo Eicher CV | ||||||||
| 6,277 | 5,584 | 693 | 12% | 18,245 | 15,383 | 2,862 | 19% | |
| Total | 74,747 | 73,893 | 854 | 1% | 200,829 | 207,192 | -6,363 | -3% |
