Thanks to GST, CV manufacturers in the country are seeing a healthy rise in sales after the decline caused by BS-IV transition.
Commercial vehicle manufacturers in India are finally seeing an upward shift in sales after a drab run for a few months. Such is the momentum that CV makers in the country have registered double-digit growth in volumes sold to dealers last month. The auto industry has been on a rollercoaster ride with the BS-IV transition and then seeing some relief with the implementation of GST.
In a reversal of trends, the leading CV manufacturer, Tata Motors, registered a growth of 15 per cent in sales of CVs, with 27,842 units sold in the last month. In July, Tata sold 8,640 units, recording a growth of 10 per cent. “After a sluggish Q1, our commercial vehicles in the domestic market in July grew 15 per cent due to a ramp-up of BS-IV production. Passing on the benefits of GST to consumers by reducing the prices of vehicles across all commercial vehicle segments has resulted in improved consumer sentiments,” said Girish Wagh, head of commercial vehicle business unit at the company.
Ashok Leyland, the second largest CV manufacturer in the country, also registered a double-digit growth of 14 per cent. The CV manufacturer declared that it sold 11,981 units on July. Sales of its medium and heavy commercial vehicles also grew 10 per cent to 9,026 units. Homegrown utility vehicles major Mahindra and Mahindra also recorded a growth of 14 per cent and sold 15,023 units in July. A good monsoon, successful GST rollout and a good run-up to the festive season gives the company confidence of achieving robust growth in second quarter, M&M President Automotive Sector Rajan Wadhera said.
All three manufacturers had previously seen their sales decline during the April-June quarter.