Bad News for VECV this New Year, December Sales Down by 20%
Published On Jan 02, 2017
While people across the world are busy celebrating the New Year with a 'happy' start, VECV may have lost the groove to 20% declined sales figures for December 2016.
The brand, as compared to 5063 CV units sold in December 2015, was only able to sell 4048 units in December 2016. This sales figure of 4048 units comprises of 3946 Eicher commercial vehicles and 102 Volvo commercial vehicles.
Eicher individually was able to sell 3946 units of buses and trucks in December 2016, as compared to 4946 buses and trucks it had sold in December 2015. Out of the total sales that Eicher managed to make in December 2016, its domestic sales contributed only 3246, while rest of the units were exported to different countries. However, the Indian CV maker had sold 4109 units in the same domestic market last year.
Volvo trucks, on the other hand, managed to sell only 102 vehicles in December 2016, as compared to 117 units of trucks and buses it had sold in December 2015.
Despite low sales figures, Volvo and Eicher may not be worrying too much as most of the CV makers in India have been registering low sales after the Indian government’s demonetization move. Lack of cash in hand can easily be blamed as the major reason behind the falling numbers. But decline in export figures from 837 units in 2015 to 700 units in December 2016 is definitely not good news for the venture between Eicher and Volvo.
Experts predict the CV market to pick up as soon as cash flow becomes normal in the coming months. The time span starting from the latter half of January may witness record breaking numbers in terms of CV sales, as more and more transporters and truckers are looking forward for buying trucks and buses, especially before April 1, 2017 as mandatory AC and BS-IV norms kick in from that date onwards. It is estimated that truck costs will go up after both the regulations are implemented.