Diwali Season Rejuvenates Commercial Vehicle Sales in India
Published On Nov 03, 2016
Last three months were a cause of concern for the M&HCV segment in India. The constantly declining sales were creating a lot of negative waves in the Indian CV markets. However, the CV manufacturers are breathing a sigh of relief as the Diwali season has revived the industry by leaps and bounds.
Many M&HCV manufacturers in India have surpassed their own October 2015 sales records, and it seems that the commercial vehicles industry is back on the track. We look at how the major CV players faired in the month of October 2016.
Tata Motors has been leading the M&HCV segment in India for consecutive years. The amount of commercial vehicles that Tata sold in October 2016 surpassed its closest competition by over 10,000 vehicles. The automobile giant from India, famous for Tata 407, sold 4,050 more vehicles in October 2016, in comparison to what it had sold in the same month in 2015. Tata has witnessed a growth of 15.51 per cent.
It may come as a shock to many commercial vehicle experts in the country but Mahindra and Mahindra has failed to impress with the number of sales. The automobile heavyweight managed to sell only 18,059 commercial vehicles in October 2016, whereas the same company had sold 18,756 commercial vehicles in October 2015.
Mahindra has come a long way in the CV industry and is considered as Tata’s closest competitor. But the current poor show will not only question the reliability of its products, but also help other CV brands rejoice for a while.
Experts in the industry agree that this home grown M&HCV automaker is turning the CV industry in India. It has become famous for its aggressive approach in the media. In fact, the CV giant has managed to become the talk of the town every second day, and this newly acquired ability has certainly helped Ashok Leyland make some serious cash.
The CV brand witnessed a growth of 27.85 per cent in number of CV sales in October 2016. Ashok Leyland has sold 12,533 units in October 2016 which is a staggering 2,730 more units than 9,803 in October 2015.
The collaboration between Eicher and Volvo seems to be working wonders for both. The joint venture has managed to file 11.19 per cent growth in number of sales. The duo had sold 3,466 commercial vehicles in October 2015, whereas managed to sell 3,854 in 2016.
CV manufacturers will have to move with caution as vehicle sales during Diwali and Dhanteras are generally higher than normal, and may not denote the complete revival of the industry. Moreover, with GST and BS-IV lined up, one can expect a lot of sharp turns in the future for CV industry.