The demand for commercial vehicles has improved as customers look to upgrade and replace their old fleet for higher uptime and demand for cleaner vehicles.
In fact, a close look at the performance of leading CV makers in India, the industry witnessed 12 percent growth in September and 8 percent growth for Q2 FY2024. This translates to wholesales of 86,119 units and 256,405 units respectively.
Tata Motors, the country’s leading CV maker reported 13 percent growth in September with sales of 37,214 units, compared to 32,979 units last year. In Q2 the company sold 99,178 CVs which was 6 percent higher YoY. In terms of the first half of the year, the company sold 181,403 units, which was 4 percent lower than what it sold for the same period last year.
Girish Wagh, Executive Director, Tata Motors said, “Tata Motors commercial vehicles domestic sales stood at 99,178 in Q2 FY24, 6% higher than Q2 FY23. Our upgraded BS6 phase II product range continues to see good traction as our customers experience benefits of lower total cost of ownership, efficient powertrains, and enhanced value-additions.”
“M&HCV segment saw a strong growth of 24 percent over Q2 of FY23, fuelled by continued government infrastructure push, robust replacement demand, and growth in core sectors, along with sustained growth from the e-commerce sector. We have scaled up our electric bus manufacturing to service orders won from various STUs under CESL’s Grand Challenge. Looking ahead, continuing infrastructure thrust by the government and improving consumption auger well for the CV industry, while rural demand remains to be a key monitorable, as monsoon has been below average,” added Wagh.
Ashok Leyland sold 18,193 units in September, compared to 16,499 units for the same period last year. For Q2 FY2024, the sales came at 71,231 units, clocking a growth of 9 percent YoY. In the first half of FY2024, the company grew its wholesales by 8 percent with sales of 86,052 units compared to 79,639 units a year ago.
| COMMERCIAL VEHICLE SALES IN INDIA | |||||||
| Company and Segment | Sep ’23 | Sep ’22 | Change (in units) | Change (in %) | Q2 FY’24 | Q2 FY’23 | Change (in %) |
| YoY | YoY | YoY | |||||
| Tata Motors | |||||||
| HCV Trucks | 12,867 | 8,889 | 3,978 | 45% | 30,369 | 24,227 | 25% |
| ILMCV Trucks | 6,377 | 6,238 | 139 | 2% | 16,483 | 16,730 | -1% |
| Passenger Carriers | 3,344 | 2,287 | 1,057 | 46% | 10,622 | 8,040 | 32% |
| SCV Cargo and Pickup | 14,626 | 15,565 | -939 | -6% | 41,704 | 44,768 | -7% |
| Total | 37,214 | 32,979 | 4,235 | 13% | 99,178 | 93,765 | 6% |
| Mahindra & Mahindra | |||||||
| LCV < 2T | 3,941 | 4,452 | -511 | -11% | 11,237 | 12,041 | -7% |
| LCV 2 T – 3.5 T | 18,917 | 16,413 | 2,504 | 15% | 54,188 | 49,798 | 9% |
| LCV > 3.5T + M&HCV | 1,139 | 801 | 338 | 42% | 3,083 | 2,255 | 37% |
| Total | 23,997 | 21,666 | 2,331 | 11% | 68,508 | 64,094 | 7% |
| Ashok Leyland | |||||||
| M&HCV Trucks | 10,109 | 9,628 | 481 | 5% | 46,945 | 42,515 | 10% |
| M&HCV Bus | 1,851 | 847 | 1,004 | 119% | 21,209 | 21,147 | 0% |
| LCV | 6,233 | 6,024 | 209 | 3% | 3,077 | 1,593 | 93% |
| Total | 18,193 | 16,499 | 1,694 | 10% | 71,231 | 65,255 | 9% |
| Volvo Eicher CV | |||||||
| 6,715 | 5,992 | 723 | 12% | 17,488 | 14,519 | 20% | |
| Total | 86,119 | 77,136 | 8,983 | 12% | 256,405 | 237,633 | 8% |
Mahindra & Mahindra sold 23,997 units, a growth of 11 percent in September. In Q2, the company grew its sales by 7 percent at 68,508 units. For H1 FY2024, the company sold 129,760 units, up 5 percent YoY. It has benefitted from strong demand for pick-up trucks for last-mile deliveries and e-commerce boom.
Veejay Nakra, President, Automotive Division, Mahindra & Mahindra said, “In September, we also crossed the 1 lakh unit mark for our Bolero Maxx Pik Up trucks, making it the fastest-selling pick up in the country to reach that mark. While demand for our key SUV brands continue to be strong, we are keeping a close watch on the availability of semiconductors and select components to meet the strong festive season demand.”
Volvo Eicher Commercial Vehicles (VECV) reported sales of 6,715 units in September, up 12 percent. The company probably witnessed one of its best performances in Q2 and H1 FY2024, with sales of 17,488 units , up 20 percent and 36,178 units, up 16 percent respectively.
Going forward, the continuous push towards infrastructure and real-estate demand across the country is expected to further provide momentum to the commercial vehicle industry.
| COMMERCIAL VEHICLE SALES IN INDIA | |||
| H1 FY’24 | H1 FY’23 | Change (in %) | |
| Tata Motors | 181,403 | 189,468 | -4% |
| Ashok Leyland | 86,052 | 79,639 | 8% |
| Mahindra & Mahindra | 129,760 | 123,076 | 5% |
| Volvo Eicher CV | 36,178 | 31,265 | 16% |
| Grand Total | 433,393 | 423,448 | 2% |
Kinjal Shah, VP & Co-Group Head – Corporate Ratings, ICRA said that the the commercial vehicle wholesale dispatch volumes picked up pace in anticipation of the seasonally strong festive period. This comes after five relatively sluggish months, post the transition to BS6 2.0 emission norms from April 1. ICRA expects the CV industry wholesale volumes to remain firm during the rest of the year, supported by steady freight demand during the upcoming festive period, economic recovery and the government’s focus on infrastructure spending in line with the budgetary allocations.”
It expects the industry to report volume growth of 2-4% in wholesale dispatches in FY2024 to 980,000 to a million units.
