Medium and heavy duty segment posts positive growth in the first half of FY16
Published On Oct 15, 2015
Towards the end of 2014, the commercial vehicle market in India was beginning to revive from a period of declined sales. As the injured phase passed, major brands witnessed a relapse in their demand and sales. Analysts in the industry record that, for the past 14 months, this medium and heavy vehicle segment has been in a period of steady performance. Rising infrastructure projects and freight movement in the first half of the year are thought to have fueled this demand. The M/HCV goods carrier segment registered a total sales of 116,418 units for this year, placed against 86,179 units in the previous fiscal. This culminates in a strong growth of 35%. The market is leaning towards a preference for vehicles of higher tonnage, and the LCV and SCV segments are observed to be lagging behind. The 35 – 40 tonne category faced the highest prospects, with an increase of 298%. Ashok Leyland, which commands an 89% dominance in this category, has prospered the most. They have seen a staggering growth of 365%. Next, the 12 – 16 tonne category has noted a a decent 43% increase.
Tata Motors, the market leader in the M/HCV segment, commands a vast 55.21% share of the market. The company rolled out 64,279 units in the first half of the year, yielding a year on year growth of 29.43%. Ashok Leyland is the second most dominant brand, with a decent market share of 31.35%. It sold a healthy 36,503 units, cashing a year on year growth of 65.25%. Other known brands in the segment include VE Commercial Vehicles, Mahindra & Mahindra, SML Isuzu and AMW Motors. All of them registered growth except for AMW Motors, which saw its sales drop by 58.69%.
Mr. R Ramakrishnan, an executive from Tata Motors, said: “The overall M&HCV segment is positive largely due to the replacement demand. Industrial output is still quite low and in mining activities, only coal is able to take care of import substitution. Iron ore mining is nowhere near where it was some years ago. Infrastructure development is beginning to fall in place but it’s still early days. So the heavy truck demand is largely replacement demand.”