October CV sales in red compared to September on muted SCV demand | The Financial Express

October CV sales in red compared to September on muted SCV demand

In terms of retail performance, the SCV and LCV segment is now starting to see some slowdown, be it in terms of excess capacity or the e-commerce and logistics companies looking towards green vehicles that could perform similar to IC-vehicle options, which clearly is lacking in the market.

October CV sales in red compared to September on muted SCV demand

The festive season failed to light up the CV market dramatically. The cumulative CV wholesales came at 71,715 units, which was 17 percent higher YoY, but 7 percent lower than September.

In the first seven months of the fiscal, commercial vehicle wholesales in India have crossed the 3 lakh units mark in the first seven months of the fiscal, in line with market estimates. However, going into the second half of the year, a cool-off in demand for select commercial vehicle segments.

The country’s largest commercial vehicle manufacturer Tata Motors reported flat wholesales year-on-year at 31,320 vehicles.  But compared to the previous month it was 5 percent lower. The slowdown on YoY basis can be attributed to degrowth in the I&LCV range and SCV Cargo & Pickup were in the red.

Mahindra & Mahindra clocked wholesales of 20,980 vehicles in October, which was 39 percent higher YoY  but 3 percent lower compared to September. The LCV segment was the only one segment in the green albeit a flat growth.

Ashok Leyland too saw its month-on-month wholesales drop by 16 percent at 13,860 units, versus 16,499 units sold in the month of September. On a YoY basis the sales improved by 38 percent.

For Volvo Eicher CV the wholesales came at 5,555 units, which was 14 percent higher compared to the same period last year, but 7 percent lower than the month of September.

In terms of retail performance, the SCV and LCV segment is now starting to see some slowdown, be it in terms of excess capacity or the e-commerce and logistics companies looking towards green vehicles that could perform similar to IC-vehicle options, which clearly is lacking in the market.

Vinkesh Gulati, Director, United Automobiles said that while the “overall CV sales were good, they were not exceptional. There is improvement in M&HCV segment, but when it comes to SCVs we clearly see a slowdown.”

He says that while at present there is lack of options in electric vehicle offerings that could perform similarly to an SCV, the moment an option comes it would clearly see robust growth, and eventually start eating into the IC-segment.

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First published on: 01-11-2022 at 18:34 IST