The commercial vehicle sector’s performance often is considered as the barometer of a country’s economic growth. And if one goes by the wholesales for November, the overall CV sales came at 65,158 units, which was 17 percent higher on YoY basis, but 9 percent lower compared to the month of October 2022.
The country’s largest commercial vehicle maker Tata Motors reported wholesales of 27,430 units, down 3.1 percent YoY, and 12 percent lower over the previous month. Barring the passenger carriers segment, all segments were in the red on a monthly basis.
For Chennai-headquartered Ashok Leyland, the wholesales came at 13,654 units, up 46 percent YoY but lower by a percent on a monthly basis. On the flip side, the company saw improved demand for M&HCV Trucks and buses both on a yearly as well as a monthly basis.
Mahindra & Mahindra, reported sales of 19,591 units, a 31 percent growth on YoY basis but also saw its monthly volumes shrink by 7 percent over the previous month.
Volvo Eicher Commercial Vehicles reported sales of 4,483 units, up 41 percent YoY basis but a degrowth of 19 percent over the previous month.
As per Elara Securities, strong replacement buying, propped by better financing schemes, healthy freight rates and improving profitability for fleet operators helped sustain growth. It says that the “M&HCV segment is on track to post 30% growth in FY2023.”
While the CV industry may not reach record sales this year, the industry is expected to continue to see sustained growth for the next few years. On the flip side, with the addition of November wholesales, the CV segment as a whole has crossed the 3-lakh sales unit. The overall CV sales in the financial year 2023 (till now) has reached 346,096 units, just a few thousand short of the 3.5 lakh-sales mark.
|Nov ’22||Nov ’21||Change (in units)||Change (in %)||Oct ’22||Change (in %)|
|SCV Cargo and Pickup||13,048||15,747||-2,699||-17%||15,618||-16.50%|
|Mahindra & Mahindra|
|LCV < 2T||2,643||2,409||234||10%||4,562||-42%|
|LCV 2 T – 3.5 T||16,193||12,049||4,144||34%||15,728||3%|
|LCV > 3.5T + M&HCV||755||521||234||45%||690||9%|
|Volvo Eicher CV|