The recovery in the commercial vehicle industry is gathering momentum on the back of replacement demand, the government’s infrastructure push and the new offerings in the segment.
The wholesales for September came at 71,112 units, up 44 percent from the 49,481 CVs sold last year. For Q2 FY2023, the overall sales came at 2,80,938 units, 55 percent higher than the 1,80,726 units sold during the same period last year.
The industry saw growth across segments from the LCVs less than 2-tonne segment to the M&HCV trucks and buses.
Tata Motors, the country’s largest commercial vehicle manufacturer sold 32,979 units, 9 percent higher YoY. Except for the I&LCV segment, Tata Motors witnessed growth across segments. In terms of Q2 FY2023 performance, the company reported a growth of 20 percent with sales of 93,765 commercial vehicles compared to 78,226 units for the same period last year.
Girish Wagh, Executive Director, Tata Motors said, “The commercial vehicles industry witnessed a consistent demand in Q2FY2023. Tata Motors CV business registered a 20 percent growth in domestic sales over Q2FY2022, recording sales of 93,675 units during the quarter. This growth was led by stronger sales of MHCVs and a robust recovery in passenger carriers’ demand.”
“Improving fleet utilisations, pick up in road construction projects and increase in cement consumption catalysed the demand recovery for MHCVs. CV exports however shrunk sharply by 22 percent due to the economic situation in Sri Lanka and Nepal though it improved sequentially by around 30%.
The recent exciting launches of the new range of smart trucks in MHCV and ILCV, and best-in-class pickups will help us serve our customers better. Going forward, while we expect strong sales in the festive season we will maintain a close watch on the evolving geopolitical, inflation and interest rate risks on both the supply and demand,“ added Wagh.
|Company||Sept ’22||Sept ’21||Change (in units)||Change (in %)||Q2 FY’23||Q3 FY’22||Change (in %)|
|SCV cargo & pickup||15,565||14,964||601||4%||44,768||42,017||7%|
|Mahindra & Mahindra|
|LCV <2 T||4,452||1,525||2,927||192%||21,608||13,095||65%|
|LCV 2 T – 3.5 T||16,413||7,259||9,154||126%||97,260||54,422||79%|
|LCV > 3.5T & M&HCV||801||684||117||17%||4,208||2,492||69%|
|Volvo Eicher Commercial Vehicles||5,992||5,226||766||15%||15,882||12,643||26%|
Mahindra & Mahindra too saw its monthly as well as quarterly sales figures improving. The company which had been one of the worst impacted OEMs due to the semiconductor shortage reported wholesales of 21,666 units in September. This is well over 100 percent YoY, albeit a low base. For the second quarter of FY2023, the wholesales grew by 76 percent to 1,23,076 units, compared to 70,009 units sold last year.
Veejay Nakra, President, Automotive Division, Mahindra & Mahindra said that September was a very exciting month with a strong start to the festive season for the company. He said that they continue to see very strong demand and performance across its portfolio including the LCVs less than 3.5 tons and its last-mile mobility brands.
Ashok Leyland, saw an uptick in demand for its trucks and buses, thanks to the opening up of the economy, the company reported a 131 percent uptick in sales for September at 10,475 units compared to 4,529 units sold a year ago.
For Q2FY2023, the company reported wholesales of 48,215 units, which was 143 percent higher compared to 19,848 units for the same period last year.
Volvo Eicher Commercial Vehicles (VECV) sold 5,992 units (+15% YoY) in the domestic market, compared to 5,226 units last September. In Q2 FY2023, VECV sold a total of 15,882 CVs, 26 percent higher compared to 12,643 units sold in the same month last year.
Going forward, while the industry seems to be still distant from attaining its earlier peaks of FY2018-FY2019, the growth chart is heading upward no doubt. From replacement demand to new infrastructure projects, e-commerce and demand for better products, the commercial vehicle industry in India is poised to see a significant uptick.